SIMIC

CU Lines launched the Trans-Pacific Express (TPX) service from Shanghai to Los Angeles on July 18 with five chartered ships ranging from 1,700 TEU to 4,400 TEU.

The Chinese liner operator's first transpacific sailing saw the 1,740-TEU A Daisenl depart Shanghai on July 18, and is expected to arrive in Los Angeles on August 2.

Other ships assigned are the 2,742-TEU AS Columbia as well as the 4,400-TEU Ren Jian 20, Ren Jian 26, and Ren Jian 27.

"We're heeding the authorities' call to shipping companies to increase shipping capacity and ease the challenges facing the international supply chain," said CU Lines.

China's vice-minister of transport Zhao Chongjiu declared that the government asked liner operators to add more capacity to long-haul routes.

Tight shipping capacity and the slow return of empty containers continue to place upward pressure on freight rates.

Said Drewry's senior manager Simon Heaney: "Previously, new entrants to a market have often destabilised trades, leading to reduced freight rates, but we don't expect that to happen in these conditions where supply chain disruption is driving prices rather than traditional drivers such as supply-demand and market concentration,"

"I think we'll see less of this trade hopping as freight rate differences between trades balance out. There's a good chance these new entrants will withdraw when conditions normalise."