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Carriers carrying out major rejigging of services to South America
FOLLOWING the acquisition of Maersk Line's Brazilian subsidiary Mercosul Line, French operator CMA CGM is reshuffling two of its services to South America.
CMA CGM is teaming up with Maersk Line and Hamburg Sud in a deal linked to competition rules following the Danish giant's takeover of the German rival.
The operators plan to establish two services linking the east coast of South America (ECSA) with north Europe and the Mediterranean starting on September 26 and October 26, respectively, according to TradeWinds of Oslo.
The North Europe service will use eight 10,500-TEU vessels operated byHamburg Sud. At the same time, Maersk Line will take slots and close its standalone service.
Linked to that is the beginning of a Mediterranean service, which will use eight 8,000-TEU vessels jointly provided by Maersk Line and CMA CGM.
The French operator is stepping up its involvement in the trade as a vessel operator by providing three vessels that would "increase its capacity and strengthen its presence on the east coast of South America".
This comes alongside the parallel restructuring of a North Europe ECSA service operated by Hapag-Lloyd and MSC.
The German and Swiss partners will launch a weekly joint service at the end of September using nine ships of 8,000 TEU to 10,000 TEU as a replacement for services operated within a vessel sharing agreement (VSA).
The move comes as buoyant demand has pushed up rates on the trade, leading some carriers to deploy extra sailing in July and August, according to Alphaliner.
It estimates that CMA CGM, Cosco and Evergreen added 25,150 TEU of extra slots on this route in recent weeks after taking a number of chartered sub-panamax and classic panamax ships.
Strong demand is reflected in rising spot rates on the Shanghai to Santos route where rates have more than trebled since last year to nearly US$4,000 per TEU earlier in August, although they have since fallen back to $2,843 per TEU.
Capacity on the Asia-ECSA route has been severely curtailed since February 2016, when the 15 carriers involved on this trade rationalised their service offerings from six weekly sailings to only three, resulting in a 40 per cent reduction in weekly capacity on this route, says Alphaliner.
The move helped to reverse the severe decline in freight rates that dropped to as little as $100 per TEU in early 2016, before rebounding to about $3,000 per TEU by the end of 2016.
CMA CGM is teaming up with Maersk Line and Hamburg Sud in a deal linked to competition rules following the Danish giant's takeover of the German rival.
The operators plan to establish two services linking the east coast of South America (ECSA) with north Europe and the Mediterranean starting on September 26 and October 26, respectively, according to TradeWinds of Oslo.
The North Europe service will use eight 10,500-TEU vessels operated byHamburg Sud. At the same time, Maersk Line will take slots and close its standalone service.
Linked to that is the beginning of a Mediterranean service, which will use eight 8,000-TEU vessels jointly provided by Maersk Line and CMA CGM.
The French operator is stepping up its involvement in the trade as a vessel operator by providing three vessels that would "increase its capacity and strengthen its presence on the east coast of South America".
This comes alongside the parallel restructuring of a North Europe ECSA service operated by Hapag-Lloyd and MSC.
The German and Swiss partners will launch a weekly joint service at the end of September using nine ships of 8,000 TEU to 10,000 TEU as a replacement for services operated within a vessel sharing agreement (VSA).
The move comes as buoyant demand has pushed up rates on the trade, leading some carriers to deploy extra sailing in July and August, according to Alphaliner.
It estimates that CMA CGM, Cosco and Evergreen added 25,150 TEU of extra slots on this route in recent weeks after taking a number of chartered sub-panamax and classic panamax ships.
Strong demand is reflected in rising spot rates on the Shanghai to Santos route where rates have more than trebled since last year to nearly US$4,000 per TEU earlier in August, although they have since fallen back to $2,843 per TEU.
Capacity on the Asia-ECSA route has been severely curtailed since February 2016, when the 15 carriers involved on this trade rationalised their service offerings from six weekly sailings to only three, resulting in a 40 per cent reduction in weekly capacity on this route, says Alphaliner.
The move helped to reverse the severe decline in freight rates that dropped to as little as $100 per TEU in early 2016, before rebounding to about $3,000 per TEU by the end of 2016.
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