Carriers Replacing Capacity Lost By Collapse of Hanjin

www.joc.com

Hanjin Shipping’s collapse has set off a rush by other container lines to add services and “extra loader” voyages to pick up the South Korean carrier’s abandoned market share on routes to, from, and within Asia.

China Cosco Shipping Lines, CMA CGM, and Yang Ming will join Hyundai Merchant Marine, Maersk Line, and Mediterranean Shipping Co. in offering extra capacity to trans-Pacific importers. The largest concentration of new capacity is on Asia-US West Coast routes, where Hanjin had a 7.54 percent market share in the first half of this year, according to PIERS, a sister product of JOC.com within IHS Markit.

The idling of Hanjin’s services has produced a spike in trans-Pacific rates, according to readings from the Shanghai Shipping Exchange, as displayed on the JOC.comMarket Data Hub. Drewry’s index of Hong Kong-to-Los Angeles spot rates held steady this week at $1,743 per 40-foot container, after a 40 percent jump last week, suggesting US importers using Hanjin aren’t having trouble finding slot spaces on other carriers. The index’s previous high for the year was $1,418 in January.

Alphaliner identified nine Asia-to-West Coast extra loaders that are under way or planned in September, with six more scheduled for October. Carriers adding ships on this route include the 2M Alliance of Maersk Line and MSC; HMM, Cosco China Shipping Line, CMA CGM, and Yang Ming.

HMM plans four Asia-US West Coast voyages in September and two in October, using four ships with capacities of 4,700 to 6,700 twenty-foot-equivalent units.

The rotation will be Gwangyang, Busan, Los Angeles, Gwangyang, with an additional call at Shanghai next week to load cargo in advance of China’s Golden Week national holidays, which begins Oct. 1. At least two additional voyages are planned in October. Some of HMM’s G6 partners are taking slots on those sailings, Alphaliner reported.

Within a week of Hanjin’s Aug. 31 receivership filing, Maersk Line and MSC announced an additional trans-Pacific service within their 2M Alliance. The new service is designated TP-1 by Maersk and Maple by MSC.

The first two sailings will link Yantian, Shanghai, and Busan to Long Beach. Subsequent voyages will call Busan, Shanghai, Yantian, and Prince Rupert, British Columbia. Maersk and MSC said the service will use 4,000 to 5,000-TEU ships, but the first two voyages will use ships with capacities of 7,800 and 9,400 TEUs.

CMA CGM, Cosco, and Yang Ming have each scheduled one-time voyages by ships between Asia and the US West Coast. The extra loaders are Cosco’s 8,500-TEU Xin Ou Zhou, CMA CGM’s 4,800-TEU APL Oman, and Yang Ming’s 4,200-TEU YM Vancouver.

Hanjin’s halt in operations also has produced changes on other routes.

Evergreen Line, “K” Line, and Yang Ming plan to take slots on an Asia-Mediterranean joint service that Cosco and United Arab Shipping Company provided within the Ocean Three Alliance. The slot deal will substitute for capacity previously provided by Hanjin within the CKYHE Alliance.

In another change, NYK Line eliminated the Middle East-Southeast Asia leg of a joint service the Japanese carrier previously operated with Hanjin. The service will continue to operate between Southeast Asia and the US West Coast, using eight NYK ships. Hanjin had contributed four of the 12 ships used on the longer service.

In the intra-Asia trade, the Korean carriers HMM, KMTC, Sinokor, and Heung-A have planned four weekly long-haul services on routes that Hanjin previously covered in Korea, China, Vietnam, Thailand, Malaysia, Indonesia, and Singapore.

Contact Joseph Bonney at joseph.bonney@ihsmarkit.com and follow him on Twitter: @JosephBonney.

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