Hanjin, Cosco cut two transpacific routes for the rest of the year

Two transpacific loops will be abandoned for the next quarter by member carriers of the CKYH Alliance, led by Hanjin and Cosco, Shippingazette reports.

For the two services, the multi-operator CLX loop will be withdrawn in October and the CKYH-operated SJX service will end in December, said a Hanjin Shipping spokeswoman, who said suspensions were part of winter hibernation.

Reports of the suspensions emerged earlier this week, as transpacific carriers struggle with low rate levels on the trade. In an American Shipper webinar, Mathijs Slangen, a senior maritime analyst with the consultant Seabury Group, said that while capacity on the transpacific has held steady, demand levels are falling as peak season is expected to arrive much later than in 2011.

"Consumer confidence is at a low level now," said Mr Slangen. "Inventory managers now are really scared to restock again."

The CLX rotates through Fuzhou, Ningbo, Shanghai, Yokohama, Long Beach and to Fuzhou. The SJX rotates through Port Kelang, Singapore, Shenzhen-Yantian, Kaohsiung, Osaka, Tokyo, Long Beach, Oakland, Tokyo, Osaka, Kaohsiung and back to Port Kelang.