A container shipping alliance plans to stop its Asia-Europe trade lane service as spot rates fall steadily.
The CKYH Alliance, consisting of Cosco, K Line, Yang Ming and Hanjin Shipping, said it will cease its joint NE5 service after all-in spot rates have dropped to as low as $700 per 20-foot equivalent unit. Its final voyage is on July 3 from Shanghai.
Industry analysts see the move by the carriers as an attempt to cut capacity supply on the trade to push up rates that have been on a downtrend reportedly because of lower offers from larger forwarders.
The pullout of the CKYH Alliance from the Asia-Europe trade follows the capacity removal by Wan Hai and Pacific International Lines, which have ended their joint Asia-North Europe service.
