By Mike Wackett (TheLoadstar) The Asia-Mediterranean profession is still “over-tonnaged”, with headhaul ship exercise listed below various other significant eastern– west markets, according to Drewry.

And it thinks the brand-new partnership routines for following April “do nothing to address this issue”.

Drewry Maritime Research information discloses that Asia–Mediterranean headhaul port supply had actually expanded 12%, year on year, by August, versus container web traffic growth of concerning 3%.

However, the collapse of Hanjin Shipping, leading to the instant suspension of the CKYHE partnership’s MD3/HPM pendulum solution, on which just Hanjin ships were released, had the result of remedying the discrepancy.

Nevertheless, Drewry keeps in mind that in spite of Hanjin’s abrupt withdrawal, it was still inadequate to elevate exercise degrees over 80% in the 3rd quarter, therefore putting in stress on area market products prices on the path.

For instance, westbound supply in September was 515,000 teu of capability versus need of 405,000 teu, leading to a typical tons variable per vessel of 79%.

Drewry anticipates the short-term merging, at the end of October, of the Ocean Three’s Adriatic (PHOEX) and also Black Sea (BEX) loopholes, as component of the vessel-sharing team’s winter season program, will certainly “no doubt improve load factors” on the profession.

But the maritime professional is worried that the just recently released pro-forma networks from the Ocean Alliance and also THE Alliance do not attend to the intrinsic overcapacity problem, and also endanger to toss the supply– need equilibrium of the tradelane out of kilter.

The Ocean Alliance has actually introduced 5 Asia–Med end-to-end solutions, with 2 of its loopholes making wayport calls at Piraeus and also Tangier.

Meanwhile, competing THE Alliance will certainly supply 3 end-to-end once a week cruisings, with among its North Europe loopholes additionally telephoning at an undefined West Med center port.

“If the 2M does not increase the number of sailings it offers the Asia–Mediterranean market next year, (currently four end-to-end loops) and Zim retains its two services, then the number of dedicated connections will next April total 14, which is identical to what is provided today,” stated Drewry.

Along with the tradelane’s solution over-tonnage, it is most likely that the vessels released on the path will certainly additionally be larger, therefore of the waterfall of ships from the Asia-North Europe path to suit brand-new ultra-large shipments following year.

And Drewry is cautioning of the unfavorable effect on Asia-Mediterranean prices from the suggested partnership routines.

It keeps in mind that the westbound area market “has become appreciably weaker” in 2016 compared to North Europe, unlike the previous year when Mediterranean prices overtook North Europe costs by approximately greater than $100 per teu.

However, in current weeks the Asia-Med area market has actually been reasonably durable, no question because of the Hanjin result and also the Ocean Three solution rationalisation.

Last week saw the Asia-Med component of the Shanghai Containerized Freight Index (SCFI) side up by 2.1% on Friday to $725 per teu, unlike North Europe which was taped down a little at $775 per teu.