COSCON Cuts AAC Service Due to Weak Transpacific Demand

Image Courtesy: China Cosco Holdings

Shanghai-based shipping company COSCO Container Lines Co. Ltd. (COSCON) has suspended the America – Asia Container (AAC) service, a high capacity Asia – US West Coast service operated with 8,500-10,000 TEU ships, according to data provided by Alphaliner.

The loop’s final eastbound vessel set sail from China’s Lianyungang on June 8.

The AAC service covered the outbound traffic from Lianyungang, Shanghai and Ningbo, while the inbound traffic was related to Oakland and Los Angeles, according to data from the company.

Capacity reductions from the withdrawal are expected to be compensated in part by the upsizing of COSCO’s Asia – US Southwest Coast (CEN) service from the 8,500 TEU scale to 13,000 TEU.

The AAC suspension is the latest initiative taken to stem overcapacity on the transpacific route, as sluggish demand and low freight rates are forcing carriers to take unprecedented steps to slash capacity, just as the traditional peak shipping season begins, Alphaliner said.

Operated by COSCON, other carriers taking slots in the AAC service are the French CMA CGM, Dubai’s United Arab Shipping Company (UASC), German-based Hamburg Süd and Singapore-based container line Pacific International Lines (PIL), under the terms of five separate arrangements.

It is the largest service to be withdrawn, and the move will be followed later this month by the suspension of the CC1 service by G6 and the Manhattan Bridge/AAE 3/AUC 2/ASUS by O3/Hamburg Süd.

Carriers appear to have over-estimated the demand growth for transpacific cargo and they are now forced to belatedly scale-back capacity provision. Total capacity removed will reach 16,000 TEU per week, resulting in a –1% year-onyear reduction in overall transpacific capacity.

Contrary to Far East – USWC capacity which is reduced by –3%, Far East – USEC capacity will still increase by 4%.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Feb 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 1 2 3 4 5

9th Annual Coasts and Marine Structures 2017 Conference

Discover Best Practise Strategies for Design, Planning, Construction and Asset Management

To remain competitive, Australian port operators must plan, design, manage and maintain their assets more creatively and proactively to meet future demands and drive profitability.

With this in mind, the Coast and Marine Structures Summit 2017 will focus on key considerations relevant to ensuring your existing assets are maximised and prepared to accommodate bigger vessels.

Hear from 20+ global experts including Maritime/Coastal Engineers, Contractors, Port Authorities and more, including GHD (USA), Indonesian Port Corporation (Asia), G-Group Consulting (New Zealand), Ausenco (Australia), Port Authority NSW (Australia), to name a few.

By attending this 2-day conference, you’ll learn about:

– Innovative planning and design of ports to create efficiencies that drive profit
– Best practice asset management strategies and new PIANC design principles for bulk terminals
– Proactive asset management and maintenance to improve durability and maximise and extend asset lifecycles
– Alternative material and protection techniques trialled and tested in the US and Europe
– Strategies to shift organisational culture and mindset from asset management to asset maintenance
– How you can leverage technology to increase the efficiency of your marine structures
– Case studies on retrofitting, expanding and upgrading your ports in cost-effective ways

More info

read more >

European Shipping Week 2017

European Shipping Week is intended to be a platform where policy-makers from the main EU institutions will meet and engage with European…

read more >

SNS2017 – The Southern North Sea Conference & Exhibition

EEEGR’s flagship Southern North Sea conference is the most important event for the energy sector in the East of England…

read more >

Seatrade Cruise Global

For more than 30 years, Seatrade Cruise Global has been the leading international exhibition and conference serving the cruise industry…

read more >