Some ports in Asia will see calls halved when new alliance service structures come into effect in April. Container trade in the region has been on the rise with Vietnam, India, Malaysia and China leading the way, shown in the Global Trade Fun Facts Intra-Asia trade infographic by Xeneta, with its second infographic (below) showing why the alliances may have a detrimental impact on Asian ports.
Nine of the top ten world container ports are Asian and the regional competition and alliances’ concentration of shipping could mean that there are some ports that find themselves a “big-time loser”, according to Olaf Merk, Administrator of Ports and Shipping with the International Transport Forum (ITF), who will be sharing more alliance insight at the PTI Terminal Automation & Training C-Level Networking Conference.
Singapore will attract 34 weekly calls for the 29 Asia-Europe services offered by the three alliances, compared with 29 calls for the current 27 loops.
It will be the only Southeast Asian hub for THE Alliance, while its Malaysian neighbour Tanjung Pelepas will retain its role as a key hub for 2M partners Maersk Line and MSC.
2M will increase the number of weekly loops on the trade from five to six in order to accommodate the extra volumes brought by HMM and Hamburg Süd under two separate slot purchase arrangements. Competition is set to be fierce as Maersk Line and MSC rcently launched an aggressive capacity hike on the two biggest trade lanes in Asia and North Europe to coincide with launch of the new Ocean Alliance in April 2017.
Leader of the Ocean Alliance, CMA CGM, has formed a joint venture with PSA-Singapore to operate the Lion Terminal. The Terminal will receive the westbound calls of two Ocean Alliance loops that are exclusively ensured with CMA CGM ships. This will mean that Port Kelang will see its number of weekly calls reduced from 11 to five.
Alphaliner has reported that the biggest changes will occur in Southeast Asia. This is because the Ocean Alliance is regrouping four carriers currently using the Singapore, Port Kelang and Tanjung Pelepas hubs.
Alphaliner said: “This includes double calls, as loops often include Singapore calls in both westbound and eastbound directions to cater for Southeast Asia imports and exports.
“This increase goes at the expense of Port Kelang.”
Infographic: Will 2M Defeat Largest Alliance?