News / Transpacific newbies add capacity as demand for express services grows

Photo: TS Lines

Transpacific newcomers Hede (Hong Kong) International Shipping and TS Lines are adding capacity to their express China-US West Coast services, despite the downward pressure on freight rates.

Hede, a subsidiary of China’s Tangshan port group, debuted on the transpacific in March, its Hede West Coast Express service offering a shuttle between Shanghai and Los Angeles, using five ships of 1,800-4,200 teu.

Last month, the carrier launched the Hede USWC Direct Express (HDX) shuttle connection between Ningbo and Los Angeles, using five 1,800-2,700 teu ships, starting with the 1,809 teu at Adamastos on 11 September.

Meanwhile, Taiwanese regional carrier TS Lines is adding two ships to its AWC2 service, which launched on 13 August.

Initially, TS Lines’ schedule listed the 1,787 teu TS Bangkok and TS Tokyo, as well as the 2,954 teu TS Melbourne as being assigned to the AWC2, which connects China’s Nansha and Xiamen ports with Los Angeles, with ad hoc sailings to Chiwan, Kaohsiung and Busan.

This week, the 4,331 teu TS Singapore joins up, with a fifth vessel, the 1,756 teu TS Kwangyang, scheduled to join the service next month.

Linerlytica’s report today suggests these services are tapping into demand for express services, adding: “There is limited congestion at the ports of Los Angeles and Long Beach, but this could start to escalate in the coming weeks if diversions from the east coast intensify.”

Linerlytica analyst Tan Hua Joo told The Loadstar the “rapid” services targeted e-commerce cargo that requires faster transits.

Concerns over a strike by dockers at US east and Gulf coast ports starting 1 October are prompting shippers to divert containers to the US west coast, resulting in Asia-USWC rates dropping at a slower rate than Asia-USEC.

On Friday, the Shanghai Containerised Freight Index showed Shanghai-USWC down 3% on the previous week, at $5,341 per 40ft. In comparison, the Shanghai-USEC lost 5%, down to $6,486 per 40ft.