CKYH to pull Asia/Europe loop

CKYH to pull Asia/Europe loop    CKYH Alliance carriers COSCO Container Lines, Hanjin Shipping, 'K' Line and Yang Ming said last week they will suspend one of their nine loops connecting Asia and Europe in early July.
   The lines' NE5 loop, which has a rotation of Shanghai, Ningbo, Kaohsiung, Yantian, Ho Chi Minh City, Singapore, Algeciras, Hamburg, Rotterdam, Le Havre, Algeciras, Singapore and Shanghai, will be dropped as of the July 3 sailing. The service has operated with nine vessels, all from Hanjin, with an average capacity of 5,576 TEUs, according to American Shipper affiliate ComPair Data.
   The member carriers will also adjust their NE6 loop to account for some port coverage dropped by the NE5. Algeciras will be added to the NE6, while Hamburg will shift from the second to the first call in northern Europe westbound from Asia.
   The revised NE6 rotation will be Gwangyang, Busan, Ningbo, Shanghai, Xiamen, Hong Kong, Yantian, Algeciras, Hamburg, Felixstowe, Rotterdam, Singapore and Gwangyang. The NE6 operates with 10 vessels, six from Hanjin and four from COSCO, with an average capacity of 9,257 TEUs.
   Of the lines' nine Asia/Europe loops, the NE5 is one of only two to call in both northern Europe and Med ports. The NE4 loop has a call in Port Said as well as three northern European ports.
   The NE5 also had the smallest average capacity of any of the CKYH's loops between Asia and northern Europe. The other five loops have average vessel capacity ranging from 8,162 to 10,038 TEUs.
   Rates from Asia to Europe are unsustainably low, with reports of base rates dropping below zero. No carriers pulled significant amounts of capacity on the trade during the slack season, outside of skipped sailings.