The upcoming winter slack season on the northern hemisphere’s east-west mainline trades has prompted the New World Alliance partners to implement a transpacific capacity reduction program and remove one service string from their portfolio.
In mid-October, Hyundai Merchant Marine, APL and Mitsui O.S.K. Lines will therefore shut down their ‘PS1’ Transpacific service.
The loop, which connects China and Korea to the Northern WCNA will close after the HYUNDAI LONG BEACH’s final departure from Yantian on 12 October.
The ‘PS1’ is operated by Hyundai (one ship) and APL (five ships), with MOL and Hamburg Süd as slot partners. It presently deploys a fleet of six ships in the size range of 5,514 teu to 6,350 teu. The loop turns in six weeks and calls at the following ports: Yantian (Shenzhen), Hong Kong, Xiamen, Busan, Seattle, Vancouver, Yokohama, Kaohsiung, Chiwan (Shenzhen), Yantian (Shenzhen).
Closing the loop will have a negative capacity impact of 5,758 teu per week and per direction.
In order to distribute this capacity reduction more evenly across the entire American West Coast, the New World Alliance will accompanying measures to the ‘PS1’ closure and alter the weekly capacities of other transpacific services.
In order to mitigate the capacity impact on Seattle and Vancouver, the alliance’s ‘PNW’ and ‘PCX’ services will swap their fleets. The 8,900 teu ships presently trading on the ‘PCX’ will be moved to the ‘PNW’ loop, which services the Pacific North West with calls at Tacoma, Seattle and Vancouver. On this loop, the ships replace a set of 6,800 teu vessels that move on to sail on the California service ‘PCX’, which serves Los Angeles and Oakland.
While the vessel swap as such does not affect overall transpacific volumes, it removes some 2,100 weekly slots from California and adds them to the northern ports.