Gemini partners to omit Shanghai call in Asia shuttle shake

Major carriers carving out designer networks to avoid competing on routes Container shipping alliances are increasingly carving out distinct network niches, rather than competing head-to-head on ... ZIM: HAPAG DEAL UPDATEWTC: DOWN FWRD: BOTTOM FISHING KNIN: DOWNGRADEDXPO: PRELIMINARY UPDATEVW: RESTRUCTURING PLAN DETAILSVW: RESTRUCTURE UPDATEDSV: ANOTHER BAD STINT BUTMAERSK: UPGRADEDGXO: CIO APPOINTMENTODFL: UPDATEDAC: ALL-TIME HIGH ZIM: HAPAG DEAL UPDATEWTC: DOWN FWRD: BOTTOM FISHING KNIN: DOWNGRADEDXPO: PRELIMINARY UPDATEVW: RESTRUCTURING PLAN DETAILSVW: RESTRUCTURE UPDATEDSV: ANOTHER BAD STINT BUTMAERSK: UPGRADEDGXO: CIO APPOINTMENTODFL: UPDATEDAC: ALL-TIME HIGH The Gemini Cooperation is to merge two of its Asia shuttle services into one string, thereby dropping a call at the world’s largest container port and key partnership hub, Shanghai. The change will lead to the end of the intra-Asia A04 shuttle and an expanded A14 service. “To enhance schedule reliability and provide a more consistent service offering, Maersk will combine the current A04 and A14 services into an enhanced A14 service,” the Danish carrier told customers – although both services are part of the Gemini network, they are only operated by Maersk vessels. “The adjustment is intended to further enhance network reliability and service consistency, while maintaining connectivity across North China and South-east Asia through a consolidated service structure. Following the implementation, the standalone A04 service will be discontinued, while relevant cargo coverage will be incorporated into the enhanced A14 service,” Maersk added. The final sailing of the A04 will be with the departure of the 4,250 teu Seaspan Lingue from Dalian on 23 September. The weekly A04 deploys two vessels with an average capacity of 4,200 teu on a rotation of Dalian-Tianjin-Busan-Shanghai, and thus feeds-in northern Chinese and South Korean shipments to its mainline services at Shanghai. Meanwhile, the existing A14 service deploys four vessels with an average capacity of 4,500 teu on a rotation of Tianjin-Tanjung Pelepas-Singapore-Xiamen-Busan. The revised A14 service kicks off with the eastbound departure of the 5,000 teu Ute from Tianjin on 26 September, while the redeployed Seaspan Lingue will depart Tianjin on the southbound voyage on 29 September. The revised A14 rotation will be Tianjin-Tanjung Pelepas-Singapore-Xiamen-Tianjin-Dalian-Busan. The net effect for shippers and forwarders is the omission of Shanghai and a reduction of calls at the South Korean gateway of Busan from two a week to one, which further reinforces the importance of Gemini’s transhipment hub at Tanjung Pelepas. Although congestion issues at Shanghai were not specifically mentioned by Maersk, it is likely they have played a part, as vessel waiting times at the world’s largest container port, and its nearby neighbour Ningbo, have remained stubbornly high in recent months, even worsening recently due to severe weather. “Terminal operations in Ningbo and Shanghai were severely disrupted again by Typhoon Saudel last week, resulting in extended delays of more than 10 days in the most severe cases,” Linerlytica noted last week. According to its data, of the combined 3.92m teu in vessel capacity awaiting a berth globally, 56% of that is tied up in North Asia, particularly in the Shanghai-Ningbo basin. According to Kuehne + Nagel, the container yards at Ningbo are near to 95% occupancy, and the average vessel waiting time is 3.5 days, while at Shanghai, the average vessel waiting time is now just under five days. “Vessel queues, berth congestion, high yard density, and schedule adjustments are creating cargo backlogs and elevated risk of rollovers and transhipment delays,” the forwarder noted, in reference to Shanghai operations. Check out today’s News in Brief podcast, featuring ex-liner executive Nils Roche on geopolitics, port congestion and changing rates. For uninterrupted access, sign in or sign up to The Daily News, Premium or The Loadstar Enterprise Plan. Comment on this article