While politicians work on avoiding a hard Brexit, they have begun producing the guidance papers…
Nervous lines work to support rates
Analysts suggest that usual pre-peak season volume reduction could be accelerated by Donald Trump’s threat to hike tariffs on Chinese goods,with many more containerships taken out of service.
The Loadstar reported shipping association BIMCO’s warning that over a quarter of container trade, 143 ships, on the transpacific could be at risk from the escalating US-China tit-for-tat trade war.
Alphaliner noted that that the service cuts announced so far were “significantly more severe” than those in 2017.
The 2M alliance partners, Maersk Line and MSC, are “temporarily suspending” one of their Asia-North Europe loop in September.
The 11 vessels deployed on the loop have an average capacity of 19,250 teu and will need to find alternative employment for the indefinite suspension. Surplus Ultra Large Container Vessels and the impact of the delivery of more newbuild ULCVs appears to be the primary source for the expected big spike in idled capacity.