Zim Integrated Shipping Services (Zim) is planning to bring back its Asia-North Europe service in late 2009 with eight 10,000 TEU vessels, a move many shipping line executives believe is unprecedented.
The new service will be launched just a year after the ending of Zim's Asia-Europe East-West Express (EWX), which is operated with nine 4,250 TEU vessels but will be withdrawn in favour of an enlarged slot deal with China Shipping Container Lines (CSCL) on the same route.
Commenting on the new service, Zim president and chief executive officer Doron Goder said: "The plans are to launch it as a fully independent service, but the exact timing of its inauguration would depend on market conditions.''
While no start date has been confirmed, the new service is expected to take off in the fourth quarter of 2009, when the present market slump is expected to reach its lowest trough.
While Zim and CSCL presently have a series of slot exchange agreements in place on both the Asia-Europe and Asia-US East Coast trades, CSCL "will not be involved as a vessel deployer or slot purchaser in the new service," said Goder.
Zim will end its EWX service in mid-December when the last of the 4,250 TEU vessels are switched to the Asia-US East Coast trade and the newly-upgraded Asia Gulf Express.
When Zim first confirmed the ending of the EWX service, the line increased its slot allocation on CSCL's Asia-Europe Express 1 (AEX1). It will retain that slot allocation, but the status might change as the new AEX2 service phases in.
Zim's newbuilding order book is one of the most extensive in the industry for vessels in the 10,000 TEU league. Eight vessels of 10,070 TEU capacity are on order at Hyundai with a delivery timetable that runs over June 2009/May 2010. In addition, a batch of 8,200 TEU vessels are on order, which it is presumed will be deployed on the transpacific trade.
With the downturn in the Asia-Europe trade and the likelihood of a reversal seemingly out of the question in the short term, Zim's ambitious new service programme is certain to make many sit up and take note that at least one line is bold enough to think positively about the future.
As one executive pointed out: "It seems a strange move to make, particularly when lines right now are cutting back on capacity and sailings on the Asia-Europe trade.
"Obviously, Zim is positioning itself for the long term and is prepared to take a loss in the initial stages of this new service in the belief that the market will swing back at some later stage."
The new service will be launched just a year after the ending of Zim's Asia-Europe East-West Express (EWX), which is operated with nine 4,250 TEU vessels but will be withdrawn in favour of an enlarged slot deal with China Shipping Container Lines (CSCL) on the same route.
Commenting on the new service, Zim president and chief executive officer Doron Goder said: "The plans are to launch it as a fully independent service, but the exact timing of its inauguration would depend on market conditions.''
While no start date has been confirmed, the new service is expected to take off in the fourth quarter of 2009, when the present market slump is expected to reach its lowest trough.
While Zim and CSCL presently have a series of slot exchange agreements in place on both the Asia-Europe and Asia-US East Coast trades, CSCL "will not be involved as a vessel deployer or slot purchaser in the new service," said Goder.
Zim will end its EWX service in mid-December when the last of the 4,250 TEU vessels are switched to the Asia-US East Coast trade and the newly-upgraded Asia Gulf Express.
When Zim first confirmed the ending of the EWX service, the line increased its slot allocation on CSCL's Asia-Europe Express 1 (AEX1). It will retain that slot allocation, but the status might change as the new AEX2 service phases in.
Zim's newbuilding order book is one of the most extensive in the industry for vessels in the 10,000 TEU league. Eight vessels of 10,070 TEU capacity are on order at Hyundai with a delivery timetable that runs over June 2009/May 2010. In addition, a batch of 8,200 TEU vessels are on order, which it is presumed will be deployed on the transpacific trade.
With the downturn in the Asia-Europe trade and the likelihood of a reversal seemingly out of the question in the short term, Zim's ambitious new service programme is certain to make many sit up and take note that at least one line is bold enough to think positively about the future.
As one executive pointed out: "It seems a strange move to make, particularly when lines right now are cutting back on capacity and sailings on the Asia-Europe trade.
"Obviously, Zim is positioning itself for the long term and is prepared to take a loss in the initial stages of this new service in the belief that the market will swing back at some later stage."