PIL-WHL shelves Asia-north Europe service, but buys Cosco slots

PIL and Wan Hai have scrapped their Far East-North Europe service (FES) but will continue to serve the trade through slot buying on two of Cosco's Far East-Europe services amid a squeeze on freight rates that started late last year and weak demand.


The two Cosco services are part of the CKYH network, the NE1 and NE3 loops.


The FES was first launched in April 2004, but was shelved in December 2008 after freight rates collapsed in the wake of the global financial crisis.


Alphaliner said recovery in freight rates last year prompted PIL and Wan Hai to reinstate the service in March 2010. The two carriers took slots on Cosco's Asia-Europe services during the last service suspension.


The report said both ocean liners will provide alternative sailings to north European ports on the NE1 that calls at Singapore, Shenzhen-Yantian, Shanghai, Ningbo, Hong Kong, Guangzhou-Nansha, Hamburg, Rotterdam, Felixstowe, Singapore; and on the NE3 calling at: Guangzhou-Nansha, Hong Kong, Xingang, Dalian, Qingdao, Ningbo, Shenzhen-Yantian, Singapore, Rotterdam, Felixstowe, Hamburg, Antwerp, Guangzhou-Nansha.


"The FES is the smallest of the direct Far East-north Europe loops, with an average weekly capacity of 4,250 TEU. Its suspension will not have a significant impact on the overall trade capacity as it accounts for only 1.5 per cent of total capacity on the route," said Alphaliner.
(Source:http://www.schednet.com)