BWR: Ocean3 Alliance restructures Asia-Europe loops

The Ocean3 Alliance of CMA CGM, UASC and CSCL will combine their FAL2 and FAL3 loops between Asia and Europe, decreasing its deployed capacity on the trade by approximately 21 percent, according to data from BlueWater Reporting.    The Ocean3 Alliance, comprised of ocean carriers CMA CGM, UASC and CSCL, will combine their FAL2 and FAL3 loops, which operate between Asia, North Europe and the Middle East Sept. 28, CMA CGM said in a statement.
   All three alliance members provide vessels for the FAL2, which currently operates with 13 vessels with an average capacity of 13,771 TEUs, according to ocean carrier schedule and capacity database BlueWater Reporting. The FAL2 has a rotation of Ningbo, Shanghai, Xiamen, Yantian, Port Kelang, Le Havre, Rotterdam, Antwerp, Hamburg, Felixstowe, Rotterdam, Jeddah, Port Kelang, Chiwan and Ningbo.
   CMA CGM provides all 12 of the 11,700-TEU average vessels on the FAL3, which has a rotation of Rotterdam, Hamburg, Antwerp, Le Havre, Jeddah, Port Kelang, Ningbo, Shanghai, Xiamen, Chiwan, Yantian, Port Kelang, Le Havre and Rotterdam.
   The merged “FAL23” will commence eastbound from Antwerp with the Sept. 28 sailing of the CMA CGM La Perouse and westbound from Shanghai Oct. 13. The newly merged service will operate with 12 vessels between 12,000 TEUs and 15,000 TEUs with a rotation of Shanghai, Ningbo, Yantian, Cai Mep, Port Kelang, Le Havre, Rotterdam, Antwerp, Hamburg, Felixstowe, Rotterdam, Le Havre, Jeddah, Port Kelang, Chiwan and Shanghai.
   Unlike the FAL2 and FAL3, the FAL23 will call Cai Mep, but will not include the Xiamen call that the FAL2 and FAL3 currently include. However, Xiamen will be added to the FAL8 service Oct. 13, CMA CGM said. The FAL8 also operates between Asia and North Europe.
   According to BlueWater Reporting’s Capacity Report, the Ocean3 Alliance currently deploys 49 vessels on the Asia to North Europe trade. Once the FAL2 and FAL3 services merge, the alliance will only deploy 36 vessels on the trade.
   The adjacent chart compares the weekly deployed capacity of alliance services from Asia to North Europe. Combined, the 2M Alliance services lead the way, deploying 79,297 TEUs a week from Asia to North Europe. This does not take into account the alliance’s AE9/Condor service, which members Maersk Line and MSC said will cease operations Sept. 14 and only be deployed as a seasonal service if sufficient demand permits.
   Services operated by the CKYHE Alliance deploy 73,069 TEUs a week in the trade, while services operated by the G6 Alliance deploy 62,206 TEUs per week. CKYHE Alliance members are COSCO, “K” Line, Yang Ming, Hanjin and Evergreen Line, and G6 Alliance comprises APL, Hapag-Lloyd, Hyundai Merchant Marine, Mitsui O.S.K. Lines, Nippon Yusen Kaisha and Orient Overseas Container Line.
   The Ocean3 Alliance currently operates four services from Asia to North Europe, which deploy a combined 58,253 TEUs of weekly capacity in the trade. Once the FAL2 and FAL3 merge, the Ocean3 Alliance will deploy 46,282 TEUs a week on three services between Asia and North Europe, a 21 percent drop, assuming the FAL23 has an average vessel capacity of 13,500 TEUs.
   In sum, a total of 24 shipping services deploy capacity on the Asia to North Europe trade, 21 of which are alliance operated services, according to BlueWater Reporting’s Capacity Report.