Major lines chop Asia-Europe service, ship breakers see boom
CMA CGM and the Mediterranean Shipping Co (MSC) have cut two Asia-Europe services in response to falling freight rates and cargo volumes following earlier cutbacks by Maersk and the New World, Grand and CKYH alliances.
Containership demolition is picking up, reports Lloyd's List, with Maersk Broker expecting the 2008 total to reach 90,000 TEU, with another 120,000 TEU being scheduled for the breakers next year.
Third quarter Asia-Europe cargo volumes have fallen for the first time since 2001, after growing 20 per cent to the beginning of this year, reported Newark's Journal of Commerce.
CMA CGM's FAL4 Far East-North Europe service will stop temporarily. The service, operated with China Shipping Container Lines, deployed four 9,700-TEU containerships moving from China to Malaysia's Port Klang then to Zeebrugge, Rotterdam and Hamburg.
This is the biggest service cut by CMA CGM since the growth in Asia Europe cargo volumes began to slow, reported Lloyd's List. The Marseilles-based shipping line has only admitted to cutting two smaller services, one between Asia and North Africa, and another to the eastern Med, said the report.
Diverted CMA CGN tonnage will be assigned to other Asia-Europe services which will allow the French shipping line to "maintain the same port coverage by FAL4 with its other services".
Geneva-based MSC said it was suspending its Asia-Black Sea Tiger service because of a "deteriorating trading environment".
MSC said its suspension involves nine 6,500-TEU containerships that will chop 2,000 TEU a week from its Asia-Mediterranean service offering.
Earlier, Maersk also suspended two services, trimming 10 per cent from last year's capacity. The CKYH alliance cut 16,000 TEU a week from two services, removing 30 per cent from its Asia-Europe capacity until March. The New World Alliance and Grand Alliance has pooled Asia-west Med services, too.
CMA CGM's east-west chief Nicolas Sartini said 18 services, totalling four million TEU had been cut since August, but the group had no plans to lay up ships, and will deploy four 9,700-TEU newbuildings on the revised FAL4.
"CMA CGM will maintain the same port coverage provided by FAL4 with its other services," the group said.
Lloyd's List said MSC has a huge orderbook that includes eight ships with of 14,700 TEU that are starting to be delivered.
Containership demolition is picking up, reports Lloyd's List, with Maersk Broker expecting the 2008 total to reach 90,000 TEU, with another 120,000 TEU being scheduled for the breakers next year.
Third quarter Asia-Europe cargo volumes have fallen for the first time since 2001, after growing 20 per cent to the beginning of this year, reported Newark's Journal of Commerce.
CMA CGM's FAL4 Far East-North Europe service will stop temporarily. The service, operated with China Shipping Container Lines, deployed four 9,700-TEU containerships moving from China to Malaysia's Port Klang then to Zeebrugge, Rotterdam and Hamburg.
This is the biggest service cut by CMA CGM since the growth in Asia Europe cargo volumes began to slow, reported Lloyd's List. The Marseilles-based shipping line has only admitted to cutting two smaller services, one between Asia and North Africa, and another to the eastern Med, said the report.
Diverted CMA CGN tonnage will be assigned to other Asia-Europe services which will allow the French shipping line to "maintain the same port coverage by FAL4 with its other services".
Geneva-based MSC said it was suspending its Asia-Black Sea Tiger service because of a "deteriorating trading environment".
MSC said its suspension involves nine 6,500-TEU containerships that will chop 2,000 TEU a week from its Asia-Mediterranean service offering.
Earlier, Maersk also suspended two services, trimming 10 per cent from last year's capacity. The CKYH alliance cut 16,000 TEU a week from two services, removing 30 per cent from its Asia-Europe capacity until March. The New World Alliance and Grand Alliance has pooled Asia-west Med services, too.
CMA CGM's east-west chief Nicolas Sartini said 18 services, totalling four million TEU had been cut since August, but the group had no plans to lay up ships, and will deploy four 9,700-TEU newbuildings on the revised FAL4.
"CMA CGM will maintain the same port coverage provided by FAL4 with its other services," the group said.
Lloyd's List said MSC has a huge orderbook that includes eight ships with of 14,700 TEU that are starting to be delivered.