By Mike Wackett

(The Loadstar) – Maersk Line’s aggressive development technique within the first three months of this 12 months was a contributing issue within the 23% drop in common freight charges in the course of the interval.

According to the newest analysis from Alphaliner: “Maersk’s decision to pursue market share contributed to the decline in freight rates of early 2016.”

It added: “In the year’s first quarter, when most competitors were trying to curb capacity growth, Maersk deployed off-schedule extra loaders on both Asia-Europe and transpacific routes.”

Based on Alphaliner’s desk of chosen first-quarter provider outcomes, Maersk’s quantity development was by far the very best, at 7%, over the identical quarter of 2015, adopted by OOCL, with 4.2% development, and CMA CGM at 2.9%.

At the underside of the provider quantity lifting league desk was MOL, which recorded a decline in volumes of 8.2% in the course of the interval.

The information compares with total market development of simply 1.6%, based on Alphaliner estimates.

Using the reported revenues from a pattern of eight principal carriers, common freight charges declined 23%, year-on-year, within the first quarter of 2016, mentioned Alphaliner.

Among carriers, the bottom charges had been earned by APL, with a mean of $797 per teu – a 22.7% decline on its common fee in Q1 2015. The subsequent lowest was OOCL, $811 per teu and a decline of 20.5%, adopted by Maersk’s $929 per teu, which was 25.5% under its common of a 12 months in the past.

Interestingly, the 2 troubled South Korean carriers, Hyundai (HMM) and Hanjin, recorded the very best common charges within the interval, $1,152 and $1,131 per teu respectively, though these had been down 24.6% and 29.8% on the earlier 12 months.

Given that HMM recorded a $240m first-quarter web loss and Hanjin a $222m deficit, regardless of these above-average charges, it’s not troublesome to see why radical price reducing is crucial for the traces to outlive.

Explaining its above-market development of seven%, at its latest interim outcomes presentation, Maersk Group chief govt Nils Andersen mentioned it was the results of “lost share last year”, when it had been sluggish to react.

However, Mr Andersen was equally bullish in regard to 2016 and mentioned that the container line aimed to develop “at least with the market” this 12 months.

And to assist it obtain this goal, Maersk will probably be advertising and marketing its “stable” 2M Alliance with MSC as a promoting level to shippers.

Commenting on the lately introduced alliance construction modifications, Vincent Clerc, chief business officer at Maersk Line, warned of “disruption” within the trade as a consequence.

He mentioned: “When a container shipping line moves from one alliance to another, both alliances need to redo their networks. There will, in the beginning, be periods with frequent changes to services and capacity, and fluctuating reliability.”

Mr Clerc added: “Of these [the four current alliances], only 2M will not be undergoing major changes in 2017.”

The Loadstar is quick turning into identified on the highest ranges of logistics and provide chain administration as among the best sources of influential evaluation and commentary.

Check them out at TheLoadstar.co.uk, or discover them on Facebook and Twitter.