CKYH member lines lay up Asia-Europe ships as peak season matures

THE CKYH alliance, comprising Cosco, "K" Line, Yang Ming and Hanjin Shipping, has announced the four allies will lay up vessels from late July to mid-August, suggesting peak season demand is weaker than expected.

In week 30, the NE4 service estimated to arrive at Ningbo on July 25 will be withdrawn, reported London's Containerisation International, and the following ports will be omitted: Ningbo, Shanghai, Shenzhen-Yantian, Hong Kong, Singapore, Port Said, Rotterdam, Hamburg, Antwerp, Shenzhen-Yantian and back to Ningbo.

In week 31, China's Cosco will withdraw its sailing by Cosco Taicang V.019W/E estimated to arrive at Shanghai on August 4. Ports omitted are Shanghai, Ningbo, Hong Kong, Guangzhou-Nansha, Hamburg, Rotterdam, Felixstowe and back to Shanghai.

Also in the same week, Korea's Hanjin Shipping will deploy a smaller 5,600-TEU ship to replace the 8,600-TEU vessel Hanjin Rotterdam estimated to arrive at Qingdao on August 4 for the MD1 service. The average ship size of MD1 loop on April 1 was 5,565 TEU, which increased later to 8,500 TEU. Its rotation includes: Qingdao, Shanghai, Ningbo, Shenzhen-Yantian, Hong Kong, Shenzhen-Shekou, Singapore, Piraeus, La Spezia, Genoa, Barcelona, Valencia and back to Qingdao.

In week 33, Taiwan's Yang Ming will withdraw its sailing by YM Mobility for NE4 service estimated to arrive at Ningbo on August 15.

In line with CHYH's move, Evergreen, the world's fifth largest carrier, and Hanjin, the world's ninth largest carrier, were recently reported by the news that they will stop unveiling new Asia-North Europe service in summer season.

Although some Asian carriers were concerned about the low Asia-Europe trade demand in the traditional peak season, some top carriers still plan to impose peak season surcharges (PSS) and raise freight rates in August.

Germany's Hapag-Lloyd has announced it will implement a PSS of $350 per TEU from August 1 for services from East Asia (excluding Japan) to North Europe and will raise rates by $250 per TEU for the trade lane from August 15.

Also, the Geneva-based Mediterranean Shipping Company (MSC), the world's second largest carrier, has announced it will levy a peak season surcharge (PPS) of US$350 per TEU on Asia-Europe trade from August 1.

Figures from Containerisation International showed that 11 per cent additional capacity was deployed on Asia to both northern Europe and the Mediterranean from April 1 to July 1 to prepare for peak season increase in demand.