2M Cut Service on Trans-Pacific

by | Jun 29, 2018

2M partners – Maersk and MSC – have announced they will be suspending their Eagle service indefinitely from next week, in addition to rationalising port rotations on three other services.

The decision to cut the service – on the Trans-Pacific trade – is in response to overcapacity, port delays in North Asia disrupting their schedules, and higher fuel prices preventing faster speeds. In the past carriers could increase their vessel speed to make up time lost in their journeys, but with rising fuel costs this is now costing them thousands of dollars more per voyage.

A number of carriers have responded to the rapidly-escalating costs by introducing emergency bunker fuel surcharges of around $50-60 per TEU on non-contract business. 

There is increasing concern that the overcapacity issues are set to continue – or perhaps deteriorate further – as the Trump administration continues to trade duty increases with China.

Due to overcapacity, increased costs are being absorbed by the steamship lines as the market will not support increased freight rates. In the short term this obviously benefits importers and exporters but in the longer term the carriers will have to react to market conditions.

The unsettled environment in the trade right now is expected to result in more carriers adjusting their port rotations, or even cutting services completely, to balance the over supply in relation to the demand. 

 

UniOcean Lines operate the most comprehensive schedule in the market, including our Trans Pacific, Northern Europe, Australasia and Inter Asian services.

Follow Us:

21st Century Representation

Interested in the many benefits of UniOcean Lines representation? Please complete our online Application Form.

The 21st Century Carrier

Find out how we combine the best of carrier and the best of local services through common goals.

More News…..

Partnership for Bangkok Port Terminal

PSA Thailand, a wholly-owned subsidiary of the global port operator PSA International, have announced a joint venture to develop and operate the Thai Prosperity container terminal in Bangkok, along with locally based logistics firm SCG. The two companies have formed...

Panama Canal Increases Draft Limit

After a period of very dry weather, the region around the Panama Canal has recently received enough rain to enable bigger vessels to travel through it.This year's lack of rainfall had resulted in many reductions in the draft size of vessels permitted through the...

2019 Asia North Europe Schedule Launched

The 2019 instalment of the UniOcean Lines Asia Europe Service Directory has just been released, which includes all major inbound and outbound loops and services operating in the trade, being the most comprehensive sailing schedule available on the market. The...

Share This