The Israeli ocean carrier will withdraw from the Transpacific Stabilization Agreement Dec. 31, making it the fifth carrier to leave the group this year.
ZIM Integrated Shipping Services Ltd. is dropping out of the Transpacific Stabilization Agreement (TSA), a discussion agreement by the major container carriers moving cargo between the Far East and the United States. ZIM said it had “no comment at the moment” on why it was making the change.
The latest revision to the agreement filed with the Federal Maritime Commission (No. 011223) indicates that ZIM will withdraw on Dec. 31.
ZIM is the fifth carrier to leave the agreement this year. China Shipping left the agreement in March after its merger with COSCO; South Korean carrier Hanjin, which filed for bankruptcy in August, withdrew in November; and Japanese carriers “K” Line and NYK left the agreement in August and November, respectively. MOL, the other major carrier based in Japan, left the group in 2008.
TSA officials were not immediately available for comment. Earlier this year, following NYK’s withdrawal from the TSA, the group said it typically leaves it up to the carriers to comment on the reasons for leaving the group. ZIM officials were not immediately available for an explanation as to why the carrier was leaving the TSA. NYK and “K” Line did not respond earlier this year to a request on why they withdrew.
Back in October 2008, when MOL announced it was leaving the TSA and the Canada Transpacific Stabilization Agreement (CTSA), it explained, “With the European Union’s abolition of liner anti-trust immunity, it has become extremely difficult to align the business processes of our entire organization when its regional divisions must operate to differing standards. Having done a thorough analysis of marketplace dynamics and the roles of TSA/CTSA relative to our unique ability to differentiate, we concluded MOL and its customers would be better served by conducting business independently from transpacific liner agreements.”
Interestingly, even though CMA CGM acquired APL earlier this year, both are listed as parties to the TSA. The other members include Maersk Line, MSC, COSCO, Evergreen Line, Hapag-Lloyd, OOCL, Yang Ming and Hyundai Merchant Marine. Collectively, these 10 carriers account for the majority of cargo moving on the transpacific trade.
According to ocean carrier schedule and capacity database BlueWater Reporting‘s Carrier Trade Route Deployment Report, these 10 carriers deploy 91,367 TEUs per week from Asia to the U.S. East Coast, accounting for 72.5 percent of deployed capacity on the trade; and 189,546 TEUs per week from Asia to the U.S. West Coast, making up 71.8 percent of deployed capacity on the trade.
ZIM exits Transpacific Stabilization Agreement
