Trans-Pacific lines implement major capacity changes

Container imports Asia to the United States fell 13% in June, down 17% from China (-25% for 1H 2023), continuing an 11 month trend, while capacity to the East and West coasts is about to experience an influx of new container ships and with the current deployment plan, the growth rate will exceed 20% from August. 

Capacity reductions in the trans-Pacific trade have failed to match the sharp decline in demand, which became particularly problematic for the carriers in the 1st quarter, whereafter carrier action mitigated it somewhat, but with record numbers of new container ships adding 2.5m TEU of global capacity this year, challenges remain. 

In a bid to address the emerging situation, the container carriers have announced a mix of changes to trans-Pacific routes, that include suspended services, cancelled voyages, new port calls, and less frequent and lower speed sailings  

THE Alliance will suspend a Pacific South Loop service from central China to the West Coast, however, THE Alliance members will also add new port calls to maintain a frequent and comprehensive service coverage.

An Evergreen trans-Pacific Arabian service, which has been weekly, will be fortnightly into the US West Coast from July through the end of August, while its US Southwest Express service already cancelled a June sailing and Ocean Alliance’s South Atlantic Express (Cosco), cancelled a sailing from Asia that was due on the East Coast in August.

Maersk previously announced in June that it would slow down 10 trans-Pacific services to the US West and East coasts, increasing transit times on some services by up to two days, though Maersk maintains that the adjustments would reduce schedule gaps and instances where vessels get delayed.

Ultimately a self-destructive scramble for market share would not be in anyone’s interests, because uneconomic rates mean that carriers simply stop serving the market, leaving shippers with fewer, or even no options.

If you have any questions or concerns about the issues raised in this article, we can review your situation, explain how you might be impacted and, if necessary, provide you with alternative solution for your trade with the United States.

Whatever challenges your US or China supply chain may face, we leverage our local partner network and long-term ocean carrier relationships, to deliver cost-effective, resilient and reliable solutions. EMAIL Gareth Mackrell.