Container shipping alliances face restructuring as demand falls
The restructuring of container shipping alliances in 2025 will prompt liner operators to compete for market share, hampering capacity even as freight rates continue to fall.
Linerlytica recently reported that only 37 container ships (77,185 teu) are currently idle, equivalent to 0.3% of the active fleet.
As operators are reluctant to cut capacity, it will be difficult to execute the planned GRI of $1,000- $2,000 per 40 feet on the Asia-Europe route on November 1.
At present, the number of vessels operating on the Asia-Europe (including the Mediterranean) route is 504, with a container capacity of 7.33 million TEUs, an increase of 25% year-on-year.
Affected by the recent port strike on the US East Coast, capacity on the Asia-US East Coast decreased by 3% year-on-year to 254 vessels and 2.72 million TEUS, while supply on the Asia-US West Coast increased by 22% to 312 vessels and 2.67 million TEUS.
Linerlytica said: "Carriers have failed to adjust Asia-Northern Europe capacity to the decline in freight demand, and Asia's scheduled capacity is expected to rebound by more than 25% in the coming weeks." In addition to selective cancellations, no carrier on Asia-Europe routes plans to reduce capacity during the winter. It would jeopardise their efforts to stem the fall in freight rates."
It speaks volumes that trunk operators are still looking for capacity. Last week was the most active week for chartering, with many new charters and renewals signed, with Maersk, CMA CGM, COSCO, Hapag-Lloyd and Evergreen all committing to new charters or renewals.
"With limited availability for vessels of all sizes, forward fixing is now a common feature, even for 1,500-3,000 teu vessels, whereas previously limited to larger vessels," Linerlytica noted.
Linerlytica recently reported that only 37 container ships (77,185 teu) are currently idle, equivalent to 0.3% of the active fleet.
As operators are reluctant to cut capacity, it will be difficult to execute the planned GRI of $1,000- $2,000 per 40 feet on the Asia-Europe route on November 1.
At present, the number of vessels operating on the Asia-Europe (including the Mediterranean) route is 504, with a container capacity of 7.33 million TEUs, an increase of 25% year-on-year.
Affected by the recent port strike on the US East Coast, capacity on the Asia-US East Coast decreased by 3% year-on-year to 254 vessels and 2.72 million TEUS, while supply on the Asia-US West Coast increased by 22% to 312 vessels and 2.67 million TEUS.
Linerlytica said: "Carriers have failed to adjust Asia-Northern Europe capacity to the decline in freight demand, and Asia's scheduled capacity is expected to rebound by more than 25% in the coming weeks." In addition to selective cancellations, no carrier on Asia-Europe routes plans to reduce capacity during the winter. It would jeopardise their efforts to stem the fall in freight rates."
It speaks volumes that trunk operators are still looking for capacity. Last week was the most active week for chartering, with many new charters and renewals signed, with Maersk, CMA CGM, COSCO, Hapag-Lloyd and Evergreen all committing to new charters or renewals.
"With limited availability for vessels of all sizes, forward fixing is now a common feature, even for 1,500-3,000 teu vessels, whereas previously limited to larger vessels," Linerlytica noted.
