Reports
WLS: Asia-North Europe capacity shrinks in Q3 amid Asia-ECNA uptick
However, allocated capacity on the Asia to WCNA trade remained flat from the quarter prior.
By BlueWater Reporting on Oct 01, 2019 16:10

   Container shipping companies managed to significantly scale back allocated capacity on the Asia to North Europe trade between Q2 and Q3 of 2019 amid a boost on the Asia to East Coast North America (ECNA) trade.
   However, weekly allocated capacity from Asia to the West Coast of North America (WCNA) and North Europe to North America remained practically unchanged between Q2 and Q3, as illustrated by data from BlueWater Reporting’s Q3 2019 World Liner Supply (WLS) Report.
   For this report, North American regions only include the U.S. and Canada. The East Coast of North America also includes the U.S. Gulf Coast. Additionally, Q2 and Q3 figures were taken from the end of each quarter.

   The Q3 2019 WLS Report provides information on: 
     • Estimated weekly allocated TEUs on 30 individual lanes operating between Europe, Asia, North America and South America, as well as changes from the prior quarter;
     • Alliance market share data on major east-west trades and changes from the prior quarter;
     • Liner shipping services that have been added and discontinued during the quarter;
     • A breakdown of specific liner services offered on individual trades;
     • Vessel information;
     • And more!
   The report, comprised completely of data, takes skipped sailings and slow steaming into account. It is designed to help ocean carriers, non-vessel-operating common carriers, freight forwarders, shippers, ports and analysts monitor trends in ocean liner shipping capacity.

   The chart below, built using a portion of the data on just four of the 30 trade routes included in the report, shows that between Q2 and Q3:
     • From Asia to the West Coast of North America (WCNA), weekly allocated capacity fell 0.1%, from 281,993 TEUs to 281,668 TEUs;
     • From Asia to the East Coast of North America (ECNA), weekly allocated capacity rose 2.3%, from 147,424 TEUs to 150,811 TEUs;
     • From Asia to North Europe, weekly allocated capacity fell 4.8%, from 243,978 TEUs to 232,186 TEUs;
     • And from North Europe to North America, weekly allocated capacity fell 0.2%, from 77,963 TEUs to 77,800 TEUs.

2020_1_8Cc

   The rise in weekly allocated capacity on the Asia to ECNA trade can mainly be attributed to a new container service that launched in August. The loop, which is jointly operated by the 2M Alliance and ZIM, is called TP88 by Maersk, Pelican by MSC and ZGX by ZIM. The trade also benefitted from the OCEAN Alliance significantly beefing up capacity on three of its container services, details of which can be found in the Q3 2019 WLS Report.
   Consequently, the 2M Alliance managed to beef up its weekly allocated capacity on the Asia to ECNA trade by 11.2% between Q2 and Q3, while the OCEAN Alliance saw a 3.2% increase. However, this growth was partially offset by THE Alliance decreasing its weekly allocated capacity on the trade by 5.6% between Q2 and Q3 and non-alliance services collectively decreasing their capacity on the trade by 7.1% over this time period. Specific figures on how much capacity each alliance allocates towards the trade lane (as well as individual carriers) can also be found in the report.
   Meanwhile, the decline in weekly allocated capacity on the Asia to North Europe trade can largely be attributed to the temporary suspension of the 2M Alliance’s AE2/Swan during the quarter.  
   As a result of this service suspension, the 2M Alliance’s weekly allocated capacity on the Asia to North Europe trade fell by 11.6% between Q2 and Q3. During this same time period, THE Alliance’s weekly allocated capacity on the trade fell by 0.3%, non-alliance operated service’s weekly allocated capacity collectively fell by 8.9%, and the OCEAN Alliance managed to offset the trade’s decline by upping its weekly allocated capacity by 4.5%
   Aggregate alliance market share remained relatively unchanged on the Asia to ECNA, Asia to North Europe and North Europe to North America trades between Q2 and Q3, although on the Asia to WCNA trade, alliance’s collectively lost share. The three major ocean carrier alliances collectively held an 80.17% share on the trade at the close of Q2, which fell to 78.70% at the close of Q3, as illustrated in the chart below.

2020_1_8Dd

   The actual report shows a breakdown of how much market share each individual alliance holds on these trade lanes. 
   The report also shows the exact TEU amount weekly allocated capacity in both directions on the Asia-East Coast South America (ECSA) trade has increased between Q2 and Q3, as well as for the drop in both directions on the Asia-West Coast South America (WCSA) trade. Additionally, the report shows how weekly allocated capacity in both directions on the North America-ECSA rose, despite a drop in both directions on the North America-WCSA trade.
   The Q3 2019 WLS Report is downloadable in an Excel spreadsheet form here