In an attempt to exact a general rate increase (GRI) from July 1, ocean liners plying Far East-Europe trades have responded with only a limited reduction in capacity.
The AEX2/CES2 services jointly operated by CSCL, Evergreen and Zim have been scrapped, and the G6 carriers have cancelled one Loop 7 sailing in week 27, which was due to depart from Asia in the first week of July. In the last two weeks of June three sailings were shelved, a report by Alphaliner said.
The CKYH, Evergreen and G6 will terminate their respective NE7, CEM and Loop 6 services in weeks 25 and 26.
The report said more void sailings are planned on the Far East-Mediterranean route, with the CKYH skipping the MD1 sailings on weeks 25 and 28, Evergreen skipping the UAM sailing on week 27 and CSCL/KL/YM/PIL/WHL to void the ABX sailing on week 28.
In spite of these efforts to balance supply and demand on Far East-Europe routes, freight rates are continuing to decline. The SCFI spot rates from Shanghai to North Europe fell to US$533 per TEU last week. Some shipping lines are now seeking rates below US$500/TEU.
