CMA CGM cuts APL link, renews Far East-Red Sea Rex2 with Hanjin, Yang Ming

MARSEILLE's CMA CGM, the world's third largest shipping line, has announced the re-launch of its old service, with new partners, Hanjin and Yang Ming, from the Far East to the Red Sea ports starting July 22.

The Rex 2 will replace the Rex 1 service, which has been operated under a vessel sharing agreement with Singapore's APL, which ended in June.

The Rex 2 service keeps CMA CGM active on this major trade lane and from July 22, it will now operate under a vessel sharing agreement with Hanjin and Yang Ming.

CMA CGM will deploy one vessel, the 3,900-TEU Ville d'Aquarius, which will rotate through Shanghai, Ningbo, Kaohsiung, Shenzhen-Skekou, Singapore, Jeddah, Sokhna, Aqaba and back to Shanghai.

"It was essential for CMA CGM to offer again Egypt and Jordan calls with a direct and improved service from Asia. This new Rex 2 service is the first step of CMA CGM redeployment in the zone and confirms the group's will to increase its presence in these countries for both import and export," said CMA CGM vice president Stephane Courquin.

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EVERGREEN optimistic about box SHIPPING MARKET prospects in third quarter

VICE Chairman of Evergreen Bronson Hsieh says he is positive about the container shipping market in the third quarter as carriers have increased rates, kept his books balanced and even made a little profit despite weak US and European economies, Xinhua reports.

Mr Hsieh said, according to Alphaliner's prediction, the world container shipping market will be growing at a rate of 6.5 per cent this year. In the later half of year, US cargo traffic growth will grow 3.5 - 5.5 per cent, while Europe's will go up from zero to 2.5 per cent. Besides, IMF also estimated the world's GDP growth rises to 3.5 per cent this year and 4.1 per cent next year.

Mr Hsieh stressed that the outlook for the rest of this year and next year is optimistic. Though capacity will grow from 7.9 per cent to 10.6 per cent next year, the world's economy might turn better and is able support the industry.

During the passed three years, there were 253 ships of over 8,000 TEU come into service. But Evergreen decided to use small and medium ships to enhance vessel utilization rate. Starting from July, Evergreen will deploy 30 new and greener L-type ships by 2015.

Mr Hsieh pointed out that for the shipping industry, making profit is not necessarily affected by the world's economy. After the world's financial crisis in 2008, Evergreen recorded a loss of US$20 billion in 2009 but made a profit of $15 billion later in 2010 because of tighter capacity control. This year's GDP growth is slower than in last year, but the carriers has succeeded in raising rates in March, April and May.

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