ZIM AND CHINA SHIPPING PLAN TRANSPACIFIC EXCHANGE OF SLOTS

ZIM AND CHINA SHIPPING PLAN TRANSPACIFIC EXCHANGE OF SLOTS    Israel-based Zim Israel Navigation is planning to exchange U.S. west coast slots on its two transpacific services with the new single-string service provided by China’s China Shipping Group.
   The move is still tentative, pending regulatory approval, a spokesman for Zim said.
   Both carriers are non-aligned in terms of membership of the various jointly operating liner alliances.
   The Pacific leg of Zim’s “ZCS” pendulum calls only in Los Angeles on the west coast of North America.
   Its ships complete their Pacific round voyage in just four weeks, less than most other carriers.
   The most competitive transit times of this service loop are to southern China westbound, and from Korea/Japan on the return.
   Both Zim’s second “ZPS” string and CSG’s “America Express Service” employ six ships each. Both have to double track during their voyages, in order to increase market coverage. “ZPS” spends 8 days on the West Coast of America and “AES” spends 13 days in Asia, all of which increase costs.
   A slot-exchange with CSG would help Zim improve its westbound service to Japan. It would help China Shipping to look stronger in southern China and enable it to offer a service to and from Shanghai. Only Zim, and not CSG, makes transpacific calls in Taiwan and Korea.
   Where their services already overlap there will be an immediate opportunity to offer two or even three sailings every week in place of just one or two.