News / Zim set to reinstate its transpacific ZX2 express service

Photo: VesselFinder

In what could be one of the shortest service suspensions in shipping history, Zim is to restart its ZX2 transpacific express service this week.

Running a Shanghai-Ningbo-Los Angeles-Shanghai rotation on a 35-day voyage round-trip, the ZX2 was suspended after the 5,500 teu Mississippi departed Los Angeles on 22 April. The vessel was then transferred to Zim’s ZEX transpacific service, which has a port rotation of Cai Mep-Yantian-Long Beach-Cai Mep.

Previous iterations of the ZX2 saw five 5,500 teu ships deployed.

However, one change to the ZX2 is that Zim has inserted a call at Xiamen prior to Shanghai, and according to Zim’s schedules, the service will relaunch with the departure of 5,500 teu Colorado, from Xiamen on Friday.

In an interview with The Loadstar following yesterday’s first-quarter results announcement, Zim chief financial officer Xavier Destriau described how difficult it had become for carriers to judge the trade’s capacity requirements.

“Not so long ago, we were talking about the risk of empty shelves – however, when we looked at inventory levels, the last five-to-six-week period has had little meaningful impact.

“But that was potentially in jeopardy. And the surge in volumes was to be expected when an opportunity to replenish showed itself so as to avoid punitive tariffs – everyone is taking advantage of this opportunity,” he said, although he subsequently cautioned that

“Does this mean the scare is behind us, I think the answer is ‘no’.

“When the 90 days end, where will we end up? The surge in volumes could be a peak, but the sustainability of this volume surge is a very big question mark,” he said.

John Kingori, operations manager at the eeSea liner database, commented: “Of particular note is the fact that Zim has reinstated the service, with no scheduled blanks anticipated over the next two months.”

And carrier was also confident that short-term rates would be strong, and has a $2,000 per 40ft general rate increase (GRI) planned for 1 June implementation.

“We have announced a rate increase for Asia-US, with the rate uptick very likely for rate improvement,” Mr Destriau added.

“The minute we end up in a more stable situation, whatever the prevailing tariff will be depends on dynamic.”