Cross-alliance cooperation on the increase as market weakens
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Cross-alliance cooperation on the increase as market weakens

Ocean carriers are pulling capacity from Chinese export routes and redeploying the ships to more robust tradelanes with growth potential.

Moreover, the weakness in the Chinese market is prompting more discussions on carrier slot swap agreements between rival alliances.

“Poor cargo demand in China and falling ocean spot freight rates have led to significant changes in global fleet deployment,” said Alphaliner.

The consultant said according to its data, more than 565,000 teu of capacity was withdrawn from Asia-North America and Asia-Europe trades last year.

It noted the biggest tonnage shift in terms of capacity was to Middle East and India-related services, which saw a boost of 320,600 teu, or 11% of fleet capacity, added last year.

The highest percentage increase was seen on the transatlantic, which recorded a 16.2% increase in capacity with the addition of 162,300 slots, as the market remained resilient despite the demand downturns seen elsewhere.

Carriers do not expect the Chinese export market to recover anytime soon, and Japanese carrier ONE said yesterday, in its results outlook, that profitability was “expected to deteriorate”, due to a softening of demand.

It said the number of blanked sailings was “expected to increase due to the longer slack season around the Chinese New Year and the time it takes for cargo volumes to recover”.

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Cross-alliance cooperation on the increase as market weakens

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