Alphaliner: Trade slump causes more service closures on the Pacific

According to Alphaliner falling cargo volumes and freight rates are forcing carriers to continue to slash capacity on the Pacific.
Following Matson’s decision to close its China-California Express ‘CCX’ service, the Chinese carriers CULines and Shanghai Jin Jiang Shipping, as well as CMA CGM, are now cutting their exposure on the
trade too.

CULines and Shanghai Jin Jiang are closing their jointly operated Trans Pacific Express ‘TPX’ service which was calling at Qingdao, Ningbo, Shanghai, Los Angeles, Qingdao.
The ‘TPX’ was lately using two ships of 1,868 teu, XIN MING ZHOU 106 and XIN MING ZHOU 108. The ‘TPX’ had been originally launched in July 2021 as a CULines standalone service with Shanghai Jin Jiang joining shortly afterwards.

The termination of the ‘TPX’ means Shanghai Jin Jiang no longer has any own service on the Pacific.
CULines had already started reducing capacity on the Pacific with the closure of its ‘TPN’ service in August but continues for now to operate its ‘Transpacific Express II’ (TPC).

Meanwhile CMA CGM is believed to be closing its Asia-USWC ‘Golden Gate Bridge’ service which was calling at Kaohsiung, Shekou, Shanghai, Busan, Oakland, Seattle, Busan, Kaohsiung, using a fleet of up to seven vessels of 5,000-11,000 teu.

The 9,415 teu CMA CGM MEDEA is currently performing the last voyage of the service which will end in Shanghai on 5 November.
The Golden Gate Bridge had been launched in January 2021, replacing the ‘Seapriority Express’.

In view of China’s upcoming Golden Week holidays, which take place in the first week of October, and the overall bearish developments on the cargo front, the main carriers active in the trade are expected to implement additional capacity cuts in the coming weeks.

These cuts will also be needed to prevent spot ocean freight rates from sinking further.

Source: Alphaliner