Carrier alliances to introduce 3 new Asia-USEC services

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SavannahAs the fallout from the U.S. West Coast (USWC) port congestion lingers, there are plans by ocean box carrier alliances to introduce three new Asia-U.S. East Coast (USEC) services.

The move is designed to provide alternative routes as carriers capitalize on the search for other paths to reach the country, and seek to benefit from the spurt in rates for East Coast services in the wake of the recent labor dispute that wreaked havoc at the USWC port.

Reportedly, spot rates from Asia to the U.S. East Coast have ballooned by more than $5,000 per 40-foot in February, more than 250% the average for the trans-Pacific trade lane, as shippers desperate to beat deadlines disregarded the price difference.

Starting end-March, the CKYHE alliance is to introduce a new service from North China to the U.S. East Coast ports of Savannah and Charleston, using nine panamax vessels of between 4,200 and 5,000 TEUs.

In May, the G6 Alliance and Zim will kick off their revived joint SCE/NYE service deploying 10 panamax ships between northeast Asia and the U.S. east coast and Gulf ports.

Also in May, CMA CGM, Hamburg Sud, and UASC will deploy 15 panamax vessels on an Asia-USEC-north Europe pendulum string.

The new and revive services will require 34 extra ships and beef up capacity between Asia and the East Coast by around 6%, all intended to pass through the Panama Canal.

Industry experts are still watching whether the new services will become permanent fixtures or just temporary settings until the backlog at the more frequented USWC clears up. Among the key issues here, they say, is the high spot rates at USEC versus the unreliability and labor issues that often plague the West Coast.

Following the labor conflict resolution, port authorities in the West Coast immediately sought to assure clients they are working doubly hard to clear the massive container pile-up and reduce the swollen number of ships waiting to berth.

On the part of Long Beach and Los Angeles, they have recently won the approval of the U.S. Federal Maritime Commission to their plan to cooperate more vigorously on finding new ways to prevent congestion and cargo delays, improve the transportation network, and enhance air quality.

The Port of Oakland in a status report said there were already visible signs of gains on the backlog after they have intensified work at the facility including implementing more overtime.