The freight rate has risen! THE Alliance adjusts November flight schedule
- Author:Kyrie
- Source:Sunny
- Release Date:2020-10-17
Affected by the epidemic, THE Alliance has re-adjusted its November flight services.
The European Shippers Council (ESC) stated that the relationship between shipping companies and their customers is becoming increasingly tense as shipping companies announce more ship cancellations and freight rates increase.
The alliance is a shipping alliance composed of Hapag-Lloyd, ONE, Yang-Ming (Yang-Ming Shipping), and HMM (Modern Merchant Shipping). It announced service adjustments in November, including Hapag-Lloyd in October. It was announced on the 15th that it would cancel the sailing after raising the freight rate.
Regulators have stated that they will carefully review the capacity management systems of these routes because cargo owners have complained about extremely high freight rates on the Pacific route and the Asia-Europe route.
ESC Maritime Policy Manager Jordi Espin said that ESC is concerned about current market behavior. He said: “The current market rules adopted by shipping companies during the epidemic did not follow the logic of creating a common competitive environment for all stakeholders because they would change And adjustments will only benefit some people."
Then explained: “During the pandemic, fuel costs are low and transportation time is long. Empty ships directly affect the supply chain flow of cargo owners. It is unfair to not follow the fuel index formula. In fact, due to the increase in air travel, freight rates It’s 67% higher than last year."
ESC urges shipping companies to resume fair competition, and make clear commitments to transparency and customer-centric attention instead of operating secretly in order to rebuild the market chain of trust.
As the largest company in the THE alliance, Hapag-Lloyd has increased its rates globally, but the company stated that due to the uncertainty brought about by the Covid-19 pandemic, the THE alliance will implement the following invalid voyages:
Asia and Northern Europe
FP1 will maintain weekly voyages in November
FP2 will maintain the weekly sailing in November
Except for week 45, FE2 will maintain weekly flights in November
Except for 47 weeks, FE3 will maintain weekly flights in November
According to a statement, due to the temporary suspension of these empty ships and FE4 flights, the alliance stated that it will continue to implement the additional loader program in the 45th to 48th week of November, and the matters involved in the additional loader program will be notified separately by each route.
Asia and the Mediterranean
MD/MD2/MD3 will maintain its weekly flights in November, except for the following weeks:
Week 45-MD2, MD3 are invalid
Week 48-MD1 is invalid
Transpacific-West Coast
All PSW and PNW cycles will maintain weekly voyages in November, except for the following PS3 Asia-India-Asia routes:
PS3 Asia to India-not valid in weeks 44 and 46
PS3 India to Asia-Not valid for 46th and 48th week
Trans-Pacific-East Coast (via Panama and the Suez Canal)
Except for the following weeks, all USEC cycles will maintain weekly sailing in November:
AG1 will continue to merge with AG3, and AG2 and AG3 will maintain all voyages in November.
Transatlantic
Except for the following weeks, all Atlantic routes will remain normal:
Week 46-AL1, AL4 are invalid
Week 48-AL1 is invalid
The European Shippers Council (ESC) stated that the relationship between shipping companies and their customers is becoming increasingly tense as shipping companies announce more ship cancellations and freight rates increase.
The alliance is a shipping alliance composed of Hapag-Lloyd, ONE, Yang-Ming (Yang-Ming Shipping), and HMM (Modern Merchant Shipping). It announced service adjustments in November, including Hapag-Lloyd in October. It was announced on the 15th that it would cancel the sailing after raising the freight rate.
Regulators have stated that they will carefully review the capacity management systems of these routes because cargo owners have complained about extremely high freight rates on the Pacific route and the Asia-Europe route.
ESC Maritime Policy Manager Jordi Espin said that ESC is concerned about current market behavior. He said: “The current market rules adopted by shipping companies during the epidemic did not follow the logic of creating a common competitive environment for all stakeholders because they would change And adjustments will only benefit some people."
Then explained: “During the pandemic, fuel costs are low and transportation time is long. Empty ships directly affect the supply chain flow of cargo owners. It is unfair to not follow the fuel index formula. In fact, due to the increase in air travel, freight rates It’s 67% higher than last year."
ESC urges shipping companies to resume fair competition, and make clear commitments to transparency and customer-centric attention instead of operating secretly in order to rebuild the market chain of trust.
As the largest company in the THE alliance, Hapag-Lloyd has increased its rates globally, but the company stated that due to the uncertainty brought about by the Covid-19 pandemic, the THE alliance will implement the following invalid voyages:
Asia and Northern Europe
FP1 will maintain weekly voyages in November
FP2 will maintain the weekly sailing in November
Except for week 45, FE2 will maintain weekly flights in November
Except for 47 weeks, FE3 will maintain weekly flights in November
According to a statement, due to the temporary suspension of these empty ships and FE4 flights, the alliance stated that it will continue to implement the additional loader program in the 45th to 48th week of November, and the matters involved in the additional loader program will be notified separately by each route.
Asia and the Mediterranean
MD/MD2/MD3 will maintain its weekly flights in November, except for the following weeks:
Week 45-MD2, MD3 are invalid
Week 48-MD1 is invalid
Transpacific-West Coast
All PSW and PNW cycles will maintain weekly voyages in November, except for the following PS3 Asia-India-Asia routes:
PS3 Asia to India-not valid in weeks 44 and 46
PS3 India to Asia-Not valid for 46th and 48th week
Trans-Pacific-East Coast (via Panama and the Suez Canal)
Except for the following weeks, all USEC cycles will maintain weekly sailing in November:
AG1 will continue to merge with AG3, and AG2 and AG3 will maintain all voyages in November.
Transatlantic
Except for the following weeks, all Atlantic routes will remain normal:
Week 46-AL1, AL4 are invalid
Week 48-AL1 is invalid