CMA CGM, CHINA SHIPPING TO ADD TRANSPACIFIC SERVICE, CAPACITY

CMA CGM, CHINA SHIPPING TO ADD TRANSPACIFIC SERVICE, CAPACITY    CMA CGM and China Shipping Container Lines will launch another joint weekly transpacific container service in June, as part of both expansion-minded carriers’ plans to increase their capacity in that trade.
   'The new loop will employ five ships of about 2,000-TEU capacity, adding about 104,000 TEUs a year in annual one-way capacity. Four vessels operated by China Shipping and one operated by CMA CGM will have a rotation of Xingang, Dalian, Kwangyang, Hakata, Nagoya, Tokyo, Los Angeles and Xingang.
   A spokesman for CMA CGM said the new North China/Japan/U.S. West Coast service, operated as part of a vessel-sharing agreement, will be its fourth U.S. West Coast transpacific service. The French shipping line entered the transpacific trade in 1999 with one weekly service.
   In a related development, CMA CGM said it plans to replace, in May, its “Shanghai Express Service” in which it slot-charter on Maersk Sealand ships, by a new agreement with China Shipping.
   Meanwhile, China Shipping is introducing new 5,500-TEU post-Panamax vessels in its Asia America South U.S. West Coast service.
   Furthermore, CMA CGM said it will upgrade its MEX TPX Mediterranean/Asia/U.S. West Coast pendulum service, operated with CMA CGM and Norasia ships. From May, vessels of about 4,000-TEU capacity in this service will gradually replace the current ships of about 3,300 TEUs.
   CMA CGM plans to control a market share of about 2.2 percent of the U.S. West Coast transpacific trade in May, and 2.6 percent of the U.S. East Coast trade.
   CMA CGM and China Shipping’s announcements of a new loop and increased capacity in the transpacific follow moves made by other carriers to add more vessels and capacity in the trade, despite the slowdown in cargo growth.