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CKYHE restructures Asia-U.S. East Coast service network

Meanwhile, the ocean carrier alliance members reconfirmed their current cooperation scheme on east-west trades until the end of March 2017.

   The CKYHE Alliance members – consisting of ocean carriers COSCO, “K” Line, Yang Ming, Hanjin and Evergreen Line –  unveiled a reorganization of their service network on the Asia-U.S. East Coast trade from early June of 2016, in addition to reconfirming their cooperation on major east-west trades until the end of March 2017.
   The CKYHE Alliance’s revised Asia-U.S. East Coast service network will include the following services and rotations:
     • The AWE1 (9 x 6,500-TEU vessels), with a rotation of Ningbo, Shanghai, Pusan, New York, Wilmington, Savannah, Pusan and Ningbo;
     • The AWE3 (10 x 8,500-TEU vessels), with a rotation of Hong Kong, Yantian, Kaohsiung, Shanghai, Pusan, Colon, Savannah, Charleston, Norfolk, Singapore and Hong Kong;
     • The AWE4 (10 x 8,500-TEU vessels), with a rotation of Qingdao, Ningbo, Shanghai, New York, Boston, Norfolk and Qingdao;
     • The AWE8 (10 x 8,500-TEU vessels), with a rotation of Xiamen, Kaohsiung, Hong Kong, Yantian, Singapore, New York, Norfolk, Savannah, Colon and Xiamen;
     • And the NUE (10 x 8,500-TEU vessels), with a rotation of Qingdao, Ningbo, Shanghai, Colon, Savannah, Charleston, Baltimore, New York, Colon and Qingdao. 
   The chart above illustrates that combined, these five services will deploy 40,500 TEUs each week, based on average vessel capacity.
   Ocean carrier schedule and capacity database BlueWater Reporting’s Capacity Report illustrates this is 26 percent more capacity than the 29,958 TEUs a week the alliance currently deploys on the trade.
   In comparison, 2M Alliance operated services deploy 21,389 TEUs per week from Asia to the U.S. East Coast. Meanwhile, Ocean3 Alliance operated services and G6 Alliance operated services deploy 12,795 TEUs per week and 41,807 TEUs per week, respectively, towards the trade.
   The 2M Alliance is comprised of Maersk Line and MSC; the Ocean3 Alliance consists of CMA CGM, UASC and CSCL; and the G6 Alliance includes Hapag-Lloyd, APL, NYL, OOCL, MOL and HMM.
   Just last week, the G6 Alliance unveiled various changes to its loops between Asia and North America, but as of now, there is no indication the alliance’s weekly deployed capacity from Asia to the U.S. East Coast will be significantly changed.
   In addition to various rotation changes between Asia and North America, the alliance will terminate its NCE loop (last sailing eta Pusan May 29), which serves trade between Asia and the U.S. East Coast, deploying 4,942 TEUs a week, according to BlueWater Reporting. The alliance’s NYE/SCE loop will also be terminated (last sailing eta Xiamen June 2), which serves trade between Asia and the U.S. East Coast, deploying 4,873 TEUs a week. However, the G6 Alliance will launch the NYX loop on the trade June 7, which according to spokespersons from APL and MOL, will deploy neopanamax ships of around 10,000 TEUs.
   In terms of the G6 Alliance’s network between Asia and the U.S. West Coast, it will resume its CC2 service at the end of May with a rotation of Ningbo, Shanghai, Pusan, Long Beach and Ningbo.
   Consequently, the CC4 service will resume its original port rotation as a shuttle service between Central China and the U.S. West Coast, with a rotation of Shanghai, Ningbo, Los Angeles, Oakland and Shanghai.
   Last week, CKYHE members COSCO and Evergreen, signed a memorandum of understanding with CMA CGM and OOCL to establish the “OCEAN Alliance.” The proposed OCEAN Alliance plans to commence operations in April 2017, subject to regulatory approvals, with an initial agreement of five years.
   Hapag-Lloyd also said last week it is discussing forms of cooperation with UASC, such as a potential combination of their mutual container shipping operations, while also noting there is no binding agreement or assurance that an agreement will be reached.