No. of Recommendations: 3
I don't spend too much time in the Container sector, but this story did catch my attention.
While there have been some new routes developing, what is more interesting is the disappearance
of the smaller fleet container companies. So, the smaller players could not compete on the long-haul
China => Western Europe route, so they tried the shorter routes, with smaller vessels. Now
they are apparently being squeezed out of shorter routes.
To compete successfully in the mighty Asia/North Europe tradelane, vessels over 10,000 teu
are now required unless special circumstances apply, whilst in the transpacific, the average
of all major mainline services is 6,250 teu. Supporters of Matson’s CLX transpacific service will
point to the fact that its five vessels average only 2,716 teu, however, these also call
in Honolulu and Guam, both of which are US flag protected by the Jones Act.

Among other developments is the availability of vessels. The older vessels that used to
make the China => Western Europe runs are now available for shorter routes.
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