CSAV is suspending its service between Asia and the Mediterranean amid sharply declining rates on Asia-Europe trade lanes, the Journal of Commerce reported.
The Chilean carrier said Tuesday the decision was based on the “unfavorable economic environment affecting the trade between the Far East and the Mediterranean.”
CSAV said the last westbound sailing of its Mare Nostrum service would leave Xingang, China, on Wednesday.
The move follows Hanjin Shipping’s decision last month to suspend its NE5 service under the Green Alliance, formerly the CKYH alliance.
Freight rates on the Asia-Europe trade lane have been plunging since early in the year as carriers have ordered and brought in new, larger ships designed for the service.
The Chilean carrier said Tuesday the decision was based on the “unfavorable economic environment affecting the trade between the Far East and the Mediterranean.”
CSAV said the last westbound sailing of its Mare Nostrum service would leave Xingang, China, on Wednesday.
The move follows Hanjin Shipping’s decision last month to suspend its NE5 service under the Green Alliance, formerly the CKYH alliance.
Freight rates on the Asia-Europe trade lane have been plunging since early in the year as carriers have ordered and brought in new, larger ships designed for the service.
The Shanghai Containerized Freight Index for Asia-Europe business reached its 2011 low in the last week of June at $845 per 40-foot equivalent, less than half the SCFI’s measure from a year ago and down some 15 percent since the start of the second quarter.