The four carrier members of the CKYH alliance announced plans to cut capacity on the routes from Asia to Europe and Asia to the Mediterranean, where overcapacity has been undermining the rate increases they and other carriers have implemented this year.
Cosco Container Lines, “K” Line, Yang Ming and Hanjin Shipping will independently implement what they call a “capacity rationalization plan” on their services in the two trade lanes by skipping some voyages in July and August.
Even as the four carriers announced their skipped calls, average spot rates in the Asia-Europe trade lane eased slightly this week as vessel overcapacity continues to erode the four big general rate increases carriers have put into effect this year.
In the period from the end of July to the middle of August, the CKYH carriers will set what they call “blank sailings” on the NE1 service operated by Cosco, the NE4 service jointly operated by Yang Ming and “K” Line, and the MD1 service jointly operated by Cosco and Hanjin Shipping.
The specific voyages that are being skipped are:
— The NE4 call at Ningbo will be skipped on July 25.
— The NE1 service call by the Cosco Taicang at Shanghai will be skipped on Aug. 4.
— The MD1 service call by the Hanjin Rotterdam, which has a capacity of 8,600 20-foot equivalent units, at Qingdao on Aug. 4 will be replaced by a smaller vessel with a capacity of 5,600 TEUs.
— The NE4 service’s Yang Ming Mobility will skip its call at Ningbo on Aug. 15.