The decline in freight volume and freight rates has forced shipping companies to continue to reduce trans Pacific transport capacity.
Delta Airlines cancels the GGB route
It is reported that CMA Delta will close its "Golden Gate Bridge" (GGB) service for direct flights between the United States and Spain. The order of ports of call for the cancelled GBB route is: Kaohsiung Shekou Shanghai Auckland Seattle Kaohsiung.
At the same time, CMA's direct EXX route from America to Spain will be added to Auckland Port. The changed path is: Yantian - Ningbo - Shanghai - Los Angeles - Auckland - Honolulu - Yantian.
In January 2021, CMA launched the GGB service of the American Western route to improve service quality and avoid congestion. It can directly reach Auckland from China. Multiple 5000-10000TEU container fleets are used.
At present, "CMA CGM MEDEA" of Dafei 9415TEU is carrying out the last voyage of this service. It left Shanghai on September 12 and is expected to return to Shanghai on November 5.
MSC will suspend some routes
In addition, recently, MSC, the world's largest container shipping company, also said that as the demand from China from the United States and Spain has been "significantly reduced", MSC will "take some measures" to rebalance its transport capacity, and will first suspend a complete line service.
So far, the major shipping carriers have been reducing their capacity through the "air" strategy, but the demand outlook has deteriorated rapidly in the past few weeks, forcing major shipping companies to consider reducing their services.
MSC of Mediterranean Shipping said that it would immediately "suspend" its SEQUOIA route from the Pacific Ocean to the West America. This service was operated within the 2M alliance with the TP3 route of Maersk, and this route would be merged into the 2M Jaguar/TP2 route.
In order to strengthen the service network of the Pan Pacific route, MSC Mediterranean launched the sixth express direct route to SEQUOIA/TP3 from West America in December 2016 to supplement the other five services of 2M on this route.
According to the eeSea liner database, the loop line deployed 11000 TEU ships between Ningbo, Shanghai and Los Angeles, and signed a 10% cabin lease agreement with SMLine of South Korea.
Due to the sharp drop in the spot freight rate in the market, MSC is the latest ship company to be disclosed to cancel the closure of the whole route after Mason Ship cancelled its seasonal route China California Express (CCX), CULines and Shanghai Jinjiang Shipping suspended the TPX route service jointly operated, and Dafei Ship also closed the service of "Golden Gate Bridge" (GGB).
"The decline in cargo volume and freight rates is forcing shipping companies to continue to reduce trans Pacific transport capacity." Alphaliner.
The termination of the TPX service of CULines and Shanghai Jinjiang Shipping, which deployed two 1868 TEU ships between China and Los Angeles, means that the latter "no longer has its own service in the Pacific".
The consultant Alphaliner added that the rapidly expanding CU Lines had taken measures to reduce its risk exposure on the trans Pacific route and closed the TPN loop in August, although the company continued to operate its trans Pacific Express11 (TPC) service.
The consultant also said that China's golden week holiday in the first week of October and the "sluggish development of the overall freight industry" meant that shipping companies would further reduce their capacity in the coming weeks. "These cuts are also necessary in order to prevent a further decline in spot freight rates."
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