News Highlights week: 35 - 2023

As part of this collaboration CNC has joined COSCO and Samudera on the latter’s joint Singapore – Haiphong ‘NVX / NVS1’ feeder service as a vessel provider.

CNC markets this joint service as ‘HSF1’, which until recently was used by the carrier for its own standalone feeder service, covering Singapore, Da Nang, Qui Nhon and Haiphong. The suspended ‘HSF1’ was previously operated with two 1,700 – 1,900 teu ships.
The joint ‘NVX / NVS1 / HSF1’ service, which shuttles between Singapore and Haiphong, is now operated using three 1,700 – 1,900 teu ships, with each carrier deploying one vessel turning every ten to eleven days. 
In the past, CNC has more than once cooperated with COSCO and Samudera on this joint 'NVX / NVS1' service. In August 2021, CNC briefly joined COSCO and Samudera on this joint service as a vessel operator. That cooperation was short-lived and lasted only for a few sailings.
Evergreen introduces South China-Thailand-Vietnam Philippines loop 
Evergreen will next month introduce a new South China – Taiwan - Thailand – Vietnam – Philippines.
Marketed as ‘TVP’, this new loop will encompass the Taiwanese carrier’s two soon-to-be-closed services, the China-Vietnam-Thailand ‘CVT’ loop and the Taiwan-Manila-Subic ‘TMS’ service.

The soon-to-be-closed ‘CVT’ turns in three weeks with three 2,000 teu ships calling at Hong Kong, Nansha, Shekou, Ho Chi Minh City, Sihanoukville, Laem Chabang, Hong Kong, Haiphong, Qinzhou, Zhanjiang, Hong Kong. 
The last sailing for this ‘CVT’ is scheduled on 6 September when the 1,984 teu EVER CORE sails from Hong Kong. Furthermore, the soon-to-be-suspended ‘TMS’ shuttles between Kaohsiung, Manila and Subic Bay on a weekly basis with the 1,930 teu KANWAY LUCKY. The last sailing is scheduled on 8 September ex Kaohsiung. 
The upcoming ‘TVP’ will turn in 28 days with four 1,900 – 2,000 teu ships, which are currently serving the ‘CVT’ and ‘TMS’. This new loop will cover Hong Kong, Shekou, Nansha, Ho Chi Minh City, Laem Chabang, Haiphong, Kaohsiung, Manila (Northport), Subic Bay, Shekou, Hong Kong, Haiphong, Qinzhou, Zhanjiang, Hong Kong. 
The KANWAY LUCKY is scheduled to start the maiden voyage of the 'TVP' as it sails from Ho Chi Minh City on 18 September. 
Panama Canal extends transit restrictions 
The Panama Canal Authority has advised its clients that restrictions on the number of daily vessel transits and maximum draft might remain in place for another ten more months as water levels in the Gatun lake remain low due to a prolonged period of drought. The El Niño weather phenomenon is likely to bring more dry weather. 
While the first measure is not having any major impact on container services using the Panama Canal, the draft restrictions prevent the carriers to fully use the capacity of their ships.

At the end of last week, 124 merchant vessels were queuing up at both sides of the Canal for a transit. 
Despite some media reports that the Panama restrictions could delay inventory restocking in the US for the Christmas shopping season, the constraints have no serious impact on the Asia-US East Coast trade. 
The number of daily transits has been reduced from 36 to 32 with 10 passage slots reserved for the big locks and 22 for the old locks. Only eight slots per day are available for vessels that arrive without reservation. 
Liner operators however always reserve their transits ahead of time and have a priority to pass the many bulkers and tankers waiting in the anchorages at both sides of the waterway. 
The only restraint for big neo-panamax ships is the draft restriction of 44 feet (13.41 meter), down from 50 feet in normal circumstances. This draft limitation forced the 15,432 teu EVER MAX to discharge 700 feu in Balboa on its maiden trip earlier this month and transit the Panama Canal with 13,345 teu aboard (43’ draft). 
A two meters draft restriction means that big ships cannot use 1,500 to 2,000 teu of their maximum capacity. Carriers as Maersk or Hapag -Lloyd were quoted as saying that the effect is not immaterial, but not huge. Both carriers said there are currently no delays in the schedule due to Panama transits. 
The effect on the Panama restrictions on ocean freight rates is yet to be determined. Spot freight rates from Shanghai to the US East Coast have seen a steady increase from USD 2,370/feu at the end of June to USD 3,100/feu in mid-August. 
Rates from Shanghai to the US West Coast also strengthened in the same period, albeit to a lesser extent. Spot freight rates from Shanghai to New York dropped however last week to USD 3,050/feu according to the Shanghai Containerized Freight Index.