PIL doubles frequency of Asia-ECSA loop

Singapore-based ocean carrier Pacific International Lines is injecting several thousand TEUs per week of capacity into the trade between Asia and the east coast of South America.    Pacific International Lines is injecting additional capacity into the trade between Asia and the east coast of South America by doubling the frequency of its dedicated service, according to ocean carrier schedule and capacity database BlueWater Reporting.
   Singapore-based PIL has increased the sailing frequency of its standalone East Coast South America Service (SSA) from every 14 days on average to every seven days.
   In doing so, the carrier has added six vessels to the five 4,113-TEU-average ships already in operation on the SSA loop. The additional vessels have yet to be named, but according to PIL’s online sailing schedule, they will have an average capacity similar to that of the existing ships on the service.
   In addition, PIL has dropped calls at Nansha and Hong Kong from the SSA, while adding new calls to Itapoa and Santos. Total transit time remains 77 days round trip, and the revised port rotation of the East Coast South America Service is Shanghai, Ningbo, Shekou Shenzhen, Singapore, Rio de Janeiro, Santos, Paranagua, Itapoa, Navegantes, Montevideo, Buenos Aires, Santos, Singapore and back to Shanghai.
   The injection of additional vessels into the Asia-to-East Coast South America trade comes at a time when shippers reportedly have had a tough time securing adequate capacity.
   According to a report from JOC.com, “Dozens of shippers have complained for months about the Asia-East Coast of South America trade lane’s lack of space.”
   Spot container freight rates also have been on the rise in the trade, another sign of potential tightness in the market. According to the Shanghai Shipping Exchange’s Shanghai Containerized Freight Index, outbound rates from Shanghai to Santos rose $331 per TEU last week alone to reach $2,180 per TEU.
   As with any economic market, however, the injection of additional supply could put downward pressure on rates if there is not enough cargo — i.e. demand — to fill those extra ships.