Hanjin, COSCO join in Europe/South America fun

Hanjin, COSCO join in Europe/South America fun    A new service linking Europe and the East Coast of South America is a significant development for the four lines involved — UASC, Hanjin Shipping, COSCO and CCNI — as it gives them a direct connection between Europe and the East Coast of South American that none currently possess in their networks.
   The six-ship service covers a range of Brazilian ports and linking to the Med transshipment hub of Algeciras and three major Northern European ports (Rotterdam, Hamburg and Antwerp). The Algeciras call is a nod to Hanjin, which in July opened a modern transshipment hub terminal in the Spanish port, from where cargo can connect to the Middle East, Africa and even the Far East.
   Of the four carriers on the service, only CCNI has any exposure to the South America/Europe trade at the moment, with capacity from the Chilean line offered only from the West and North coasts of South America, according to American Shipper affiliate ComPair Data.
   In particular, the service fills a gaping hole in the service networks of COSCO and Hanjin — two of the nine largest liner carriers in the world. Both provide service between Asia and South America (Hanjin via a range of services to all three coasts, and COSCO only to the East Coast) but none between South America and Europe. In fact, COSCO only has four ships serving South America — as part of the Evergreen-led 10-ship ESA service between Asia and the East Coast of South America.
   Four new carriers serving the East Coast South America/Europe trade could also raise the competitive stakes on the lane. The cadre of large European lines — Maersk Line, Mediterranean Shipping Co., CMA CGM and Hapag-Lloyd — as well as South America specialist Hamburg S'd and Chilean line CSAV, have dominant shares of the trades. It would bring to 18 the number of lines offering capacity — a 22 percent increase.
   While 2,500 TEUs per week won't unduly overload capacity levels between Brazil and Europe, it is a sign that lines on the sidelines see South America as a new battleground. Hamburg S'd's creative new WAMS loop shows this as well, as ComPair Data's Francis Philips rightly mentioned in a commentary last week. ' Eric Johnson