BWR: Ocean carriers shake up Asia-ECSA trade

Data from BlueWater Reporting shows the termination of the NHX service between Asia and East Coast of South America will decrease weekly deployed capacity between the two regions by 10.2 percent.    Ocean carriers Yang Ming, “K” Line, Hyundai and PIL will end their jointly-operated NHX between Asia and the East Coast of South America with the last sailing to depart Sept. 27 on the Kota Lumayan from Busan, according to their online service schedules.
   Hyundai refers to the service as the NHX, while Yang Ming, “K” Line and PIL call it the SA1, AESA and SSA, respectively.
   According to ocean carrier schedule and capacity database BlueWater Reporting, the loop has a rotation of Busan, Shanghai, Ningbo, Shekou, Singapore, Rio de Janeiro, Santos, Navegantes, Paranagua, Santos, Rio de Janeiro, Singapore, Hong Kong and Busan. The NHX operates with 12 vessels with an average capacity of 4,575 TEUs. Evergreen Line, COSCO, Hanjin, NYK and ZIM purchase slots on the service.
   Although the NHX is ending, Hyundai will join Hamburg Sud’s AS2 between Asia and the East Coast of South America with the Oct. 9 sailing of the Hyundai Splendor from Busan, according to its online service schedules. The Hyundai Splendor is the only vessel the South Korean carrier will provide on this loop, which it dubbed the NE2.
   Along with Hamburg Sud, CMA CGM, Hapag-Lloyd, CSCL and UASC currently provide vessels on the AS2. NYK, CMA CGM’s subsidiary Delmas and Hamburg Sud’s subsidiary Alianca purchase slots on the loop.
   The AS2 has a rotation of Busan, Qingdao, Shanghai, Ningbo, Chiwan, Singapore, Port Kelang, Santos, Paranagua, Montevideo, Buenos Aires, Rio Grande, Porto Itapoa, Santos, Port Kelang, Singapore and Busan. The service operates with 13 vessels with an average capacity of 8,977 TEUs.
   In addition, Hyundai will also purchase slots on Hapag-Lloyd’s ASE, which operates between Asia and the East Coast of South America. Hyundai will join the loop with the Oct. 10 sailing of the CSAV Trancura from Busan, according to its online service schedules.
   Hapag-Lloyd, CMA CGM and Hamburg Sud provide vessels on the ASE with CSCL, NYK, UASC, Delmas and Alianca purchasing slots.
   Effective Oct. 10, the loop’s rotation will be Busan, Shanghai, Ningbo, Yantian, Hong Kong, Singapore, Port Kelang, Sepetiba, Santos, Porto Itapoa, Navegantes, Paranagua, Santos, Sepetiba, Port Kelang, Singapore, Hong Kong and Busan. The added calls at Busan and Sepetiba (eastbound) will increase the ASE’s rotation time from 11 weeks to 12 weeks. Average vessel capacity on the service is 8,478 TEUs.
   The adjacent chart illustrates that with the termination of the NHX, weekly deployed capacity between Asia and the East Coast of South America will fall 10.2 percent, from 44,783 TEUs to 40,208 TEUs. This projection does not account for missing voyages and is based on the services’ average vessel capacity.
   Although the NHX is ending, five other loops deploy capacity between Asia and the East Coast of South America. In addition to the two abovementioned services, which Hyundai is joining, these services include the ESA, operated by Evergreen Line, COSCO, Zim and Hanjin, with an average vessel capacity of 8,710 TEUs; the CSW, operated by MOL with an average vessel capacity of 5,818 TEUs; and the Ipanema Service/ASAS3, operated by MSC and Maersk Line with an average vessel capacity of 8,225 TEUs.
   In sum, a total of 16 container shipping carriers deploy capacity between Asia and the East Coast of South America, as illustrated by BlueWater Reporting’s Carrier Trade Route Deployment Report.