Recently, according to the latest announcement issued by Matson Clippers, Mason will cancel the CCX route in September.

The last CCX service will depart from Ningbo on September 6 and Shanghai on September 8, and then Matson will only provide services on the two main routes of CLX and CLX+.

Matson's China-California Express (CCX) was launched in July 2021 as a temporary expedited solution for customers in Oakland and Southern California during severe service disruptions in the western United States. This is Matson's third transpacific expedited service.

Before the 2019 epidemic, Matson had only one CLX route. Due to the outbreak of the epidemic and the huge market demand for stable and fast timeliness, CLX+ and CCX routes were added in July 2020 and July 2021 respectively.

The port sequence of CCX route is: Ningbo-Shanghai-Auckland-Long Beach.

Overall timeliness: 12-14 days to Oakland Pier, then 2-3 days to Long Beach Pier.

As an effective alternative transportation solution for China-US air freight, the advantages of Matson Express CCX service include:

Short voyage: CCX Shanghai to Auckland Port 12 days, Ningbo to Auckland Port 14 days;

The Port of Long Beach and the Port of Oakland are both Mason dedicated terminals (CLX/CCX);

Arrive at the port on time, and the container will be placed on the frame the next day after the ship is in a ready-to-lift state;

Long Beach Port: The pick-up location is located at the Outer Depot (STE) 3.5 miles from the terminal, and no appointment is required for pick-up;

Port of Oakland: The pick-up location is located at Pier 63 or the Outer Depot (STE) 0.5 miles away from the pier. No reservation is required for pick-up;

The truck driver's pick-up time is the shortest in the industry (less than 25 minutes on average);

Vessels are moderately sized for fast loading and unloading.

Why did CCX suspend operations?

At present, the official did not mention the specific reason for the cancellation of CCX. However, according to the market situation, it can be guessed that the CCX air freight rate is relatively high, which may be the main reason for the suspension of CCX.

The suspension of CCX's operations is actually a foreboding. In June, CCX was suspended due to empty flights. Matson started the "big and small week" working mode for CCX routes, with CCX in one week and no CCX in one week.

At the same time, the price of CCX has dropped on a weekly basis, and even dropped again on Friday and Saturday. The market is also not as plentiful as it used to be.

It can be clearly felt from the shipping booking index from China to various ports in the United States. According to the latest data from FBX, on Friday, the spot freight rate of containers in the west of the United States fell sharply by 6% to $5,419/FEU; the east of the United States fell by 1% to $9,085/FEU.

The launch of CCX is to meet the market's needs for clippers: the global supply chain will be severely congested in 2021, and CCX has a strong advantage in terms of timeliness due to its independent terminal, so even if the Matson Clipper is more expensive than other clippers, In order to replenish the goods, Chinese sellers do not hesitate to use Mason Clippers to replenish the goods at high prices.

Now, the global supply chain is recovering day by day, and shipping prices are cooling down. Therefore, for Matson, the air freight rate has increased costs and reduced profits.

Matson's suspension of CCX route operations can be said to be another strong proof of the decline in Sino-US trade volume.

For the suspension of CCX, whether it will affect the subsequent freight rates of Mason is a question that many sellers are concerned about.

After CCX ceases service, Matson's cargo will be more concentrated on CLX and CLX+ routes, which greatly reduces Matson Clippers' operating costs. At the same time, there is one less Matson ship in the market, which reduces the position and may also raise the freight rate of Matson.

At present, many sellers are about to ship to cope with the peak season in the second half of the year, and the demand for clippers will also increase.

In this regard, some people in the industry speculate that if the volume of goods climbs again, and the United States and West become seriously congested again, CCX may start operations again.

Of course, some people in the industry believe that with the fading of the epidemic, the continued decline of the shipping market, and the follow-up of time-sensitive services by other shipping companies, in addition to the CCX route that will be cancelled, the departure and stay of the CLX+ route may also be put on the agenda one day.

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