Three Carriers Suspend All-Water Service

Three container lines will suspend a joint service between Asia and the U.S. East Coast, the carriers announced Wednesday, cutting back capacity on trans-Pacific lanes where liner companies have been pressing to pump up long-depressed rates.

CMA CGM, Hyundai and Maersk said they will drop the all-water loop through the Panama Canal after the last eastbound departure Sept. 27 from China. But CMA also insisted the move is only a suspension of service in response to market demand that it expects to recover.

“This rationalization of port coverage and slot supply corresponds to the actual trend demand observed on the Asia-U.S. market since beginning 2009. Suspension of services is in our mind a temporary move. We are fairly confident that the North America trade will rebound in the near future,” said Jean-Philippe Thénoz, CMA CGM vice president North America lines.

Rates have grown more than 50 percent on some trans-Pacific spot lanes as carriers have announced “rate restoration” price increases and capacity cuts.

The three lines provided eight vessels of 5,100 20-foot equivalent unit capacity to operate the loop calling such ports as Ningbo, Shanghai, Qingdao, Pusan, Balboa, Savannah, New York and Miami. Future coverage of the ports will be through existing services already operated independently or in other partnerships.