The latest major capacity cut has been announced by Norasia Line.
They have suspended their ANE service, which was serving the ports of
Shanghai, Ningbo, Xiamen, Yantian, Hong Kong, Port Kelang, Jeddah,
Lisbon, Le-Havre, Hamburg, Rotterdam, Antwerp, and Felixstowe.
This loop was not a major one for the UK, as Felixstowe was with a
transhipment from Antwerp, but it is still another 7 ships removed
from the overall Far East trade, which is increasing the space
pressure on the remaining tonnage.
Summary of recent large cuts affecting the Asia - Europe trade
October - APL/Mitsui/Hyundai remove 7 ships, combining CEX and SCX
services
Capacity reduced by approximately 8,000 TEU per week
November - Maersk/Safmarine remove 7 ships on AE8 loop
Capacity reduced by approximately 8,000 TEU per week
December - Cosco/K Line/Hanjin/Yang Ming remove 7 ships
Capacity reduced by approximately 7,000 TEU per week
January - Norasia suspends ANE service, removing 7 ships.
Capacity reduced by approximately 5,000 TEU per week
The existing cuts have caused heavy pressure on space in the run up
to Chinese New Year, with most carriers now overbooked.
In addition to these loops being suspended, many carriers have also
withdrawn vessels that would have been operating over the Chinese New
Year holidays, due to the long factory closures in China.
Our schedules are being reworked to take into account the many
changes that have happened. In the meantime, we would ask that you
refer any sailing schedule enquiries to your local WT office for the very
latest information.
The current outlook is for trade to drop off significantly after the
Chinese New Year holidays. This is expected to keep freight rates
at low levels, even in view of the latest capacity cuts. With the carriers
operating at a loss now, the industry is in the process of downsizing,
and further tonnage withdrawals look likely.
We will keep you informed, as and when there are further changes.