Is The European Line Down To $620 To $655? 2M Suspension!

2M Alliance partners MSC and Maersk will resume reducing the coverage of the "Winter schedule" from Asia to Northern Europe by December to mitigate the impact of falling demand and falling freight rates on routes. Starting at the end of this month, the 2M Asia-Nordic Link will be suspended for seven weeks.

MSC said it was taking steps to adjust capacity to accommodate a slowdown in trade demand from Asia to northern Europe. Maersk added that its overall goal was to "provide predictability to our customers and ensure minimal disruption to its supply chain by providing alternative routes and coverage for affected ships".

MSC said that as an alternative to bulk shippers, it could provide docking at other Nordic ports that are not blank loops. Specifically, Griffin/AE55 routes for MSC and Maersk will be suspended at weeks 43, 45, and 48; Condor/AE7 routes will be suspended at weeks 44 and 46; and Lion/AE6 routes will be suspended at weeks 47 and 49.

It turns out that the large-scale air navigation plan implemented by shipping companies on the Asia-Nordic route during the Golden Week failed to effectively slow the downward trend of freight rates, resulting in a 50 percent drop in freight rates in September.

In addition, Herberot, Dafayton, and others announced last week that FAK rates will be raised sharply starting November 1, but so far there has been little impact.

In fact, Loadstar received an unsolicited offer from a Shenzhen freight forwarder for 40-foot containers from Shanghai to Felixto, Rotterdam, and Hamburg between $620 and $655, valid from October 18 to November 18, allegedly carried by Maersk.

At the same time, at the worst time, new container ships are pouring into the market. After delivering 180000 TEUs in August, 200000 TEUs in July, and a record 30, 000 TEUs in June, about 190000 TEUs of new capacity were delivered last month. The fleet of large container ships delivered from Asian shipyards will continue until next year, worsening the disconnect between supply and demand.

In fact, MSC alone has orders for 1.5 million TEUs, followed by CMA CGM, which orders 1.3 million TEUs for new ships.

According to Alphaliner, the Geneva-based MSC currently has an operating fleet of 5.4 million TEUs, and the gap with Maersk has widened to 1.3 million TEUs without considering new ship orders.

MSC has taken over two 24,000 TEU super large container ships (ULCV) this month, but Alphaliner pointed out that the newly delivered 24346TEU "MSC Micol" may be idle for three weeks until the 2M Lion/AE6 loop is launched in phases next month.

However, with the announcement of 2M winter plans, super-large container ships (ULCV) are likely to be moored for a longer period of time.