TS Lines expands Africa services and orders more ships
Taiwanese regional carrier TS Lines has increased its capacity on its Far East-East Africa services ...
XOM: MOMENTUMFWRD: EVENT-DRIVEN UPSIDEPEP: TRADING UPDATE OUTMAERSK: BOTTOM FISHING NO MOREDHL: IN THE DOCKHLAG: GREEN DEALXOM: GEOPOLITICAL RISK AND OIL REBOUND IMPACTZIM: END OF STRIKE HANGOVERCHRW: GAUGING UPSIDEBA: STRIKE RISKDSV: STAR OF THE WEEKDSV: FLAWLESS EXECUTIONKNIN: ANOTHER LOWWTC: TAKING PROFITMAERSK: HAMMERED
XOM: MOMENTUMFWRD: EVENT-DRIVEN UPSIDEPEP: TRADING UPDATE OUTMAERSK: BOTTOM FISHING NO MOREDHL: IN THE DOCKHLAG: GREEN DEALXOM: GEOPOLITICAL RISK AND OIL REBOUND IMPACTZIM: END OF STRIKE HANGOVERCHRW: GAUGING UPSIDEBA: STRIKE RISKDSV: STAR OF THE WEEKDSV: FLAWLESS EXECUTIONKNIN: ANOTHER LOWWTC: TAKING PROFITMAERSK: HAMMERED
Taiwan’s TS Lines (TSL) — predominant on Asian trades — is looking to raise its market profile in India with extra loaders, refocusing from its traditional target markets.
The carrier will operate a direct, non-stop ad-hoc sailing from West India to the US west coast, according to industry sources.
The TS Kwangyang has an ETA of 5 October at Nhava Sheva port, and TSL India sales executives believe the vessel’s arrival will drum up sufficient shipper support for a full-ship sailing.
The ship is also due to call Mundra on 7 October, before proceeding on its long-haul journey.
“We are accepting dry and reefer cargo bookings, offering a 30-day transit to Los Angeles,” a sales executive told The Loadstar.
According to the source, the vessel is due to arrive at Los Angeles on 11 November.
TSL also loads USWC cargo from India on a transhipment basis via Qingdao in China, taking about 45 days on average for calls to Los Angeles or any other ports in the region.
“Most USWC services from India go via Asian hubs,” the executive explained.
Spot rates from Nhava Sheva or Mundra to Los Angeles are now pegged at $5,250 per teu and $6,250 per feu, according to market sources. One commented: “[TSL] might be trying to test the waters for a faster service opportunity.”
The niche regional carrier has a clutch of intra-Asia services out of India, connecting Nhava Sheva, Mundra and Chennai with China, Malaysia and Singapore, having strengthened its consortium networks in recent months.
Interestingly, TSL’s India-USWC ad-hoc launch comes as shippers and forwarders moving goods to the strike-hit and closed US east and Gulf coasts remain clueless as to how to deal with the disruption in that region, which holds greater trade significance for Asia.
Now the port strike has begun, container lines on India-USEC trades have advised customers to expect disruption to their cargo already in transit and awaiting connections.
Maersk, in a new update, noted that it had contingency plans for scenarios arising from a port shutdown, but admitted the situation remained challenging.
“We are diligently working to plan and address potential disruptions proactively,” the carrier said. “Longer labour dispute durations may exacerbate disruptions, affecting import and export activities, container availability and overall operational efficiency,” it added.
But local industry observers are not betting on any viable or reliable alternatives, other than “holding one’s breath”, to see how things develop.
“The labour unions at the west coast ports are clear that their members are not going to handle additional calls that are diversions,” one source said.
Check out this clip from today’s podcast on why shippers have few alternatives, and what will happen to rates.
Featuring Stephanie Loomis, head of ocean freight, North America, at Rhenus, and Peter Sand, chief analyst, Xeneta
Meanwhile, container lines have already lined up hefty emergency surcharges to recoup extra costs they expect due to operational disruptions. The latest example is contained in an advisory from MSC – a surcharge of $1,500 per teu and $3,000 per feu from 27 October for cargo loaded from the Indian subcontinent and the Middle East to the US east and Gulf coasts.
CMA CGM has said it would begin collecting similar additional local port charges on inbound and outbound containers moving via the US east and Gulf coasts from 11 October.
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