With the sharp decline in demand levels for global trade routes and a sharp drop in freight rates, shipping companies are preparing to implement the strictest reduction in liner services since the outbreak of the epidemic.

In order to stabilize freight rates, shipping companies have suspended their services and reduced their speed, causing the container shipping market to experience overnight changes. Following the recent suspension and reduction of trans Pacific route services, the three major alliances are considering suspending or merging some Asian Nordic loop services to mitigate the impact of a sharp decline in bookings and mitigate the erosion of a significant decline in freight rates.

On October 11th, Maersk issued a statement stating that due to its forecast of a decrease in global demand, Maersk is seeking to balance its transportation service network accordingly. After suspending two trans Pacific routes at the end of last month, it will cancel the capacity of the Asia Nordic route.

Maersk stated that the first affected vessel will be the 'MSC Hamburg' vessel, which will depart from Ningbo on October 26th and serve the 2M 'AE1/Shogun' ring route with a capacity of 16652TEU. The vessel will pass through Ningbo, Xiamen, Yantian, Tanjung Parapas in Malaysia, as well as Rotterdam, Zebruch, and Bremen ports in Europe.

According to eeSea data, 11 ships were deployed on the loop, with an average capacity of 15414 TEUs and a round-trip journey of 77 days.

Maersk stated, 'Our overall goal is to provide predictability to customers and minimize supply chain disruptions by providing alternative routes and coverage for affected ships.' Meanwhile, Maersk's 2M partner MSC stated yesterday that the voyage of 'MSC Hamburg' was only temporarily cancelled, indicating that services will resume within a week.

But the significant decline in booking volume, especially from China, means that the three major alliances have no choice but to rationalize and adjust them to avoid further sharp drops in spot and short-term contract freight rates, which will have a negative impact on their long-term contracts that maintain profits.

In fact, a source serving the Asia Nordic shipping company recently stated that the company's booking volume is 'very poor'. This is the worst prospect seen since the beginning of the epidemic, with a 25% decrease in cabin booking demand, 'he added, adding that the booking volume in the UK in the coming weeks is' particularly low ', but hoping that this is' just a small interlude '. He said, 'After the Golden Week holiday, market demand is weak, and this year may be the worst year

As demand continues to weaken and spot freight rates continue to decline, shipping giants are forced to take proactive measures to manage capacity by canceling more voyages and, in some cases, even terminating routes. Next, in order to save the market, shipping companies may cancel more European routes. There may even be tight cabin conditions.

Here is a reminder that shippers and freight forwarders who are about to ship in the near future should communicate well with shipping companies, customers, etc., and make sure to make a shipping plan as soon as possible to avoid affecting the shipment! Forward to Zhou Zhi~

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