DCN April 2019 Edition

Hyundai Supreme
the AAUS service when HMM was a full member, prior to May
2017) on 17 August. In announcing the new partnership HMM
noted that hitherto its only current China-Australia capacity was
through a slot purchase (on the YoYo/Panda/CAE/AAUS service),
while EMC said the expansion in service offerings was in response
to the increasing trade demand on the route.
MARKET REACTION
HMM also announced it was in the process of elevating its
Australian agent (then a joint venture with Inchcape Shipping
Services) to a subsidiary status “to strengthen its position in
Australia and provide more stable service”. Simultaneously,
EMC was reported to be taking full ownership of its local agent,
Evergreen Shipping Agency (Australia) Pty Ltd, established in 2002,
which has branches in Brisbane, Sydney and Melbourne. Trade
watchers declared the new service would hardly be welcomed by
the East Asia-EC Australia trade’s existing players (and so it has
proved). But HMM, EMC and APL were encouraged not only by
2017’s southbound peak season – of which frenzied overbooking
and cargo rolling ex-China was a feature - but also by unexpectedly
long-and-strong southbound volumes in the first half of 2018, with
southbound rates holding at levels double the previous year’s.
A3 PREMIUM PRODUCT
However, it was immediately evident that 2018 northbound liftings
could not hope to match 2017’s grain-driven bonanza, and the
extra capacity on both legs would have an inevitable impact on
profitability (see accompanying article). Meanwhile, coincidentally
– or not – also on 14 June the A3 consortium announced moves
to quickly protect what it regards as the premium product in the
N&EA-Australia market by making adjustments to two of its
three weekly loops to provide “more competitive service in both
directions and comprehensive coverage”, also from August. While
the A3N (northern) loop remained unchanged, some port calls
were shuffled between A3C (central) and A3S (southern) strings
and extra calls added. A3C‘s port rotation added northbound
calls at Kaohsiung and Ningbo for a new rotation of Shanghai,
Ningbo, Sydney, Melbourne, Brisbane, Kaohsiung, Xiamen,
Ningbo, Shanghai, while A3S shed Kaohsiung to rotate Xiamen,
Shekou, Hong Kong, Sydney, Melbourne, Brisbane, Xiamen. While
it was unclear at the time of this announcement whether A3
intended to proceed with a long-mooted upgrade to larger tonnage
on the central loop, before long it became known the partners
would introduce 8000 TEU ships – and indeed add a sixth to
accommodate the additional port calls.
When A1X actually arrived it had none of the foreshadowed
tonnage. Instead HMM contributed the chartered 5042 TEU
Pamina and 5060 TEU MP The Edelman, Evergreen the 4353
TEU Ital Moderna and Ital Melodia (both previous N&EA service
participants) and APL (nominally) the 4253 TEU Navios Lapis. The
former AAX vessel CMA CGM Puget (4367 TEU) has recently taken
over from Navios Lapis.
REGULAR DIRECT BREAKBULK/CONTAINER SERVICES BETWEEN AUSTRALIA AND NORTH & EAST ASIA
CARRIERS/SERVICE* PORT ROTATION FREQUENCY VESSELS
Sheila Fitzgerald
Austral Asia Line (5,6)
AUEC
Austral Asia Line (5)
AUWC
Swire Shipping
APA (5,6)
Swire Shipping
NAX
Kobe+, Busan, Incheon, Tianjin, Bayuquan+, Shanghai, Kaohsiung, Brisbane,
Newcastle, Port Kembla+, Melbourne, Adelaide+, Portland+, Gladstone+, Mackay+,
Townsville+, Kobe+
Tianjin, Busan, Shanghai, Kaohsiung, Singapore, Darwin+, Port Hedland/ Dampier+,
Fremantle
Kobe+, Busan, Incheon, Tianjin, Bayuquan+, Shanghai, Kaohsiung, Brisbane,
Newcastle, Port Kembla+, Melbourne, Adelaide+, Portland+, Gladstone+, Mackay+,
Townsville+, Kobe+
Monthly
Monthly
Monthly
2 x 2028 TEU
1 x 2118 TEU
2 x 969 TEU
2 x 2028 TEU
1 x 1158 TEU
Shanghai, Ningbo, Kaohsiung, Nansha, Lae, Port Moresby, Townsville, Kaohsiung 20 days 1 x 2564 TEU
1 x 2500 TEU
(5) Actual port calls may vary per voyage. (6) AAL and Swire Shipping operate these services under a VSA; each carrier has own port rotation. + Inducement calls
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