13.8 C
Hamburg
Friday, October 23, 2020
Home Services Blank Sailings Shipper anger as THE Alliance adjusts November schedules on higher rates

Shipper anger as THE Alliance adjusts November schedules on higher rates

Confidence is being "eroded" and the relationship between the shipping lines and their customers is becoming increasingly strained according to the European Shippers' Council (ESC) as lines announce more vessel cancellations and rising rates.

THE Alliance, a shipping alliance composed of Hapag-Lloyd, ONE, Yang Ming and HMM, has announced its November service adjustments, including void sailings following the German carriers' announcement on 15 October that it would raise rates.

Regulatory authorities have said they will scrutinise the lines' capacity management systems as shippers have complained about sky high rates on both the Pacific and Asia to Europe trades.

The ESC is concerned by the ongoing market behaviour, according to Jordi Espin, ESC policy manager maritime transport, who told Container News, "Current market rules adopted by shipping lines during the pandemic don't follow the logic of framing a common playing field for all stakeholders, since they change and adapt as to benefit only one part."

He went on to explain that "It is not fair that fuel index formulas are not followed during pandemic times when the fuel cost is low, when transit times are longer and when blank sailings impact directly on the shippers' supply chain flows. It is a fact that rates are 67% higher than last year in combination with fewer service calls and less customer service."

ESC urges shipping lines to return to a behaviour that reflects fair play with a clear commitment on transparency and customer centered attention, without under-cover operations in order to reestablish a market chain of trust.

"We are about to reach a  point of no return where the market confidence is at stake of being severely eroded. This is not the kind of behaviour that we expect when working in a partnership," concluded Espin.

Hapag-Lloyd, which is the largest company of the alliance, has raised its rates worldwide, but the company says due to the uncertainty caused by the Covid-19 pandemic it will implement, along with its partners, the following void sailings.

Asia and North Europe

FP1 will maintain weekly sailings in November

FP2 will maintain weekly sailings in November

FE2 will maintain weekly sailings in November except in Week 45

FE3 will maintain weekly sailings in November except in Week 47

With these void sailings and the temporary suspension of the FE4 service, THE Alliance says it will continue the Extra Loader Program with sailings on Week 45 to 48 in November, while the participation of the Extra Loader Program will be separately advised by respective Lines, according to a statement.

Asia and the Mediterranean

MD1/MD2/MD3 will maintain their weekly sailings in November, except for in the following weeks:

Week 45 – MD2, MD3 void

Week 48 – MD1 void

Transpacific – West Coast

All PSW and PNW loops will maintain their weekly sailings in November except for the following PS3 Asia-India-Asia leg:

PS3 Asia to India – Week 44, 46 void

PS3 India to Asia – Week 46, 48 void

Transpacific – East Coast (via Panama and Suez Canals)

All USEC loops will maintain their weekly sailings in November except for in the following weeks:

EC3 – Week 45, 48 void

Asia and Middle East

AG1 will remain merged with AG3, and AG2 & AG3 will maintain all sailings in November.

Transatlantic

All Atlantic sailings will be maintained except for in the following weeks:

Week 46 – AL1, AL4 void

Week 48 – AL1 void

- Advertisment -Port Montreal advertisment
- Advertisment - LR Sustainability Decarbonisation Digital Adverts

Latest Posts

Information sharing communities and digital supply chain visibility

Supply chain operations can be complex. Especially where multi-modal transport is necessary, and where dynamic decision making is required for the routing of goods...

Red Hook Terminals selects Octopi’s TOS

Red Hook Terminals has signed a subscription agreement for the Octopi cloud -based terminal operating system (TOS) by Navis at its Newark, New Jersey...

Hapag-Lloyd to upgrade its EMX service

Hapag-Lloyd has announced it will restructure the East – Mediterranean Express (EMX) service in order to further enhance its North Europe-Mediterranean product. As of early...

RCL expands China-Indian subcontinent links

Thai feeder operator Regional Container Lines is enhancing its connections between China and the Indian subcontinent, through slot purchases on CMA CGM's North China-India...

Port of Le Havre turns green with pollution control deals

Port of Le Havre has joined the "Getting to Zero" coalition which aims to reduce greenhouse gas (GHG) emissions from shipping by at least...

We have introduced a voluntary registration system which will help us to understand our customers better and offer them an improved service.

From 1 January, 2021 registration will be required but news content access will remain free of charge.