Close to 7% of the total capacity on the transpacific container tradelane has been yanked in the past four weeks, according to analysis from Alphaliner.
“The fall-out from mounting Sino-US trade tensions is starting to be felt,” Alphaliner reported in its latest weekly report, with three transpacific service withdrawals announced in the last four weeks.
THE Alliance and OCEAN Alliance will each take out one Asia – US West Coast string at the end of July and August, respectively, following the 2M carriers’ decision to withdraw one of their transpacific strings at the end of June.
Combined, these three Asia – USWC service cancellations will remove a weekly total of 21,300 teu from the route, or 6.7% of the trade’s total capacity to the west coast as at the end of June.
While the service cancellations on the transpacific – and elsewhere – have seen the idle boxship fleet grow and chartering rates drop off, the capacity withdrawals to the US are being implemented during the traditionally busy summer peak season, and have triggered what Alphaliner described as a “sharp increase” in spot freight rates from the Asia to US West Coast. SCFI spot rates from Shanghai to Los Angeles have risen by 41% over the past three weeks and they currently stand at a 12-month high of $1,685 per feu.