UASC, Hanjin, HMM and Yang Ming withdraw Asia-Med service
United Arab Shipping Company, Hanjin, Hyundai Merchant Marine and Yang Ming are to suspend their weekly service between Asia and the Eastern Mediterranean until further notice, ifw-net reports.
No reason has yet been given, but lacklustre cargo growth to Europe combined with falling westbound freight rates is thought to form part of the equation.
The service deploys eight vessels, averaging 4,350teu, on a rotation of Busan, Shanghai, Ningbo, Yantian, Singapore, Port Said, Trieste, Venice, Koper, Port Said, Singapore, Hong Kong and Busan.
The last sailing, according to the carriers’ schedules, is due to depart from Busan on 17 December.
The service was launched in May last year and will be replaced by transhipment services.
It is the second service to be withdrawn so far this year, the first being CSAV’s to the Western Mediterranean in July.
Despite the changes, all-in freight rates to the Western Mediterranean have continued to fall.
According to the Shanghai Shipping Exchange’s China Containerised Freight Index, the average fell to only US$1,130 per teu on 2 December, representing a 10% decline since July, and a 28% decline since 3 December 2010. The falls are even greater if fuel surcharges are excluded.
No reason has yet been given, but lacklustre cargo growth to Europe combined with falling westbound freight rates is thought to form part of the equation.
The service deploys eight vessels, averaging 4,350teu, on a rotation of Busan, Shanghai, Ningbo, Yantian, Singapore, Port Said, Trieste, Venice, Koper, Port Said, Singapore, Hong Kong and Busan.
The last sailing, according to the carriers’ schedules, is due to depart from Busan on 17 December.
The service was launched in May last year and will be replaced by transhipment services.
It is the second service to be withdrawn so far this year, the first being CSAV’s to the Western Mediterranean in July.
Despite the changes, all-in freight rates to the Western Mediterranean have continued to fall.
According to the Shanghai Shipping Exchange’s China Containerised Freight Index, the average fell to only US$1,130 per teu on 2 December, representing a 10% decline since July, and a 28% decline since 3 December 2010. The falls are even greater if fuel surcharges are excluded.
