New arrangement on FE-South America trade

Four major shipping lines have formed an operational alliance on the Far East-East Coast of South America (Ecsa) trade, which includes a call at Cape Town on the eastbound leg, according to Ivan Naik, Durban-based MD of PIL South Africa. The joint container service is to be operated by NYK, K-Line, PIL (Pacific International Lines) and HMM (Hyundai Merchant Marine) as from mid-June, he told FTW. “Ten ships – each of around 4 250-TEU capacity – are being deployed on a 70-day rotation,” he added. “This will enable a weekly service to be maintained on the port rotation: Shanghai, Ningbo, Hong Kong, Shekou, Singapore, Santos, Buenos Aires, Montevideo, Navegantes, Paranagua, Santos, Rio de Janeiro, Cape Town, Singapore, Hong Kong and Shanghai.” Only PIL and K-Line ships – each have three vessels in the fleet – will call at Cape Town. NYK is also a three vessel contributor to the overall service, while HMM provides one ship. This four-line alliance, said Naik, replaces the original plan made at the end of last year. This was the end of the joint service between PIL and Mitsui OSK Line at the end of December, with both lines having separate plans for their new services on the trade. What PIL originally intended, according to Naik, was to run independently until June, then to enter a joint service with K-Line on the route – operated by 10 vessels of 2 800-to-3500 TEU capacity, five from each line. But this has now been substituted by the four-line ship-sharing agreement, which, Naik stressed, will provide excellent economies of scale – with the fleet being serviced with cargoes from four separate line streams. The increased capacity is clearly a sign that growth on the route is expected, he added.