Global box carriers axe more of their Asia-Europe capacity.

http://www.lloydslist.com/ll/news/viewArticle.htm?articleId=20017600766

THREE of the world’s largest container carriers that had tried to stay aloof from service rationalisation efforts have finally bowed to the inevitable by scaling back their Asia-Europe services as trade growth heads towards zero.

Mediterranean Shipping Co has withdrawn capacity from the route while CMA CGM and China Shipping are axing a recently launched joint service.

The two partners have decided to suspend the FAL4 loop, which they inaugurated in July with eight 9,700 teu vessels.

This is the biggest service cut carried out by CMA CGM since growth in cargo volumes between the Far East and Europe began to slow down. Until now, the group has only admitted to dropping two smaller services, one between Asia and North Africa, and another serving the eastern Mediterranean.

With other services being adjusted to allow for the withdrawal, MSC said it would be reducing weekly space availability on its Asia-Europe services by 2,000 teu. That is thought to be around 5%, and reflects the fact that larger ships are now being phased in on other loops, so leaving the net reduction at less than 6,500 teu a week.