According to a news report by The Loadstar, rather than relying on a network of overwhelmed commercial feeders, ocean carriers are launching dedicated services on intra-Asia trade routes as demand for freight services boom.
“In the latest development, TheAlliance members ONE and Yang Ming have teamed up with regional carriers Korea Marine Transport and SITC Container Lines to provide a weekly service between South Korea, central/south China and South-east Asia,” the report wrote.
Korea-China-Straits (KCS) service by ONE and Korea-China-South-east Asia Express (KCX) by Yang Ming will each deploy one vessel with a nominal capacity of 2,500-2,800 teu on a 28-day round trip. The service, set on a rotational schedule will commence on 30th October and will cover Busan-Shanghai-Xiamen-Singapore-Port Kelang-Pasir Gudang-Laem Chabang-Shekou-Busan.
“In light of the strong cargo demand between north-east Asia and South-east Asia and the new cooperation frameworks set by the Regional Comprehensive Partnership. The KCX service will not only shorten the transit time between Central China and Singapore/Malaysia, but also strengthen the service network connecting north-east Asia and ASEAN members,” said Yang Ming.
According to ONE, “The unique selling proposition of this service is the Pasir Gudang call, and customers can now take advantage of shipping from Pasir Gudang to Laem Chabang.”
The Loadstar added that the traditional intra-Asian carriers, like their ocean carrier peers, are enjoying record earnings from the hitherto tight margin business. Intra-Asia freight rates have trebled in the past 12 months on some high-demand links, with capacity reported as “extremely tight” by local forwarders across many routes.
“Indeed, Thai-based feeder and domestic container line Regional Container Line (RCL) reported a record interim result, a net profit of $198m for the first six months of this year, compared with just $7m for the same period of 2020. RCL attributed its strong H1 result to a surge of demand for durable goods and medical supplies, which combined with port congestion had “magnified the impact of the phenomenon”.
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