The Ocean Alliance and THE Alliance have joined the 2M alliance in cancelling strings on the transpacific. According to analyst Alphaliner the cuts equate to 6.7% of capacity deployed on the trade, or 21,300 teu per week.
Although lines are cutting services on the trade the earlier ramping up of capacity on the transpacific means overall capacity is still slightly higher than one year before.
The cuts would seem to be having the desired effect on previously under pressure spot rates. “The capacity withdrawals are being implemented during the traditionally busy summer peak season, and they have triggered a sharp increase in spot freight rates from the Far East to US West Coast,” Alpahliner said in its weekly newsletter.
Shanghai Containerised Freight Index spot rates between Shanghai and Los Angeles have jumped 41% over the last three weeks to $1,685 per feu.
However, a new APL service in August and the upgrade of an existing service will add 6,600 teu of capacity a week to the trade.