Container lines are facing further rate turbulence as the halting of a 2M alliance service marked the "first casualty" in a transpacific trade war, according to Alphaliner.
2M partners Maersk Line and MSC are suspending their Eagle service until further notice from July.
It calls at Kaohsiung, Yantian, Xiamen, Shanghai, Busan, Vancouver, Seattle and Yokohama.
The loop is the smallest of the five Far East-US west coast services operated by 2M, using six ships of between 4,200 teu and 5,000 teu.
MSC said the move was made "as a result of the challenging operating environment for business on the transpacific trade." Maersk called it a “temporary change”.
"The loop will thus become the first casualty of this year’s transpacific freight war," Alphaliner said.
It added that the transpacific route is facing increasing pressure from surplus capacity and falling freight rates.
"Volume growth has slowed and the market outlook for the coming months has become increasingly uncertain, due to the Sino-US tariff war that is due to take effect from 6 July," it added.
Total weekly capacity on the Far East-US west coast route will increase by 6.9% in September, as carriers continue to battle for market share amidst declining cargo growth, Alphaliner said.
The 2M closure will only remove 1.5% of overall capacity.
This will be offset by the introduction of APL’s EXX service in August, and by the upsizing of the EX1 service in July.
This follows the introduction of the new PNS service by Korean start-up SM Line in May and the upsizing of several other services, including the SEA/CP1/AC5/SC3, operated by CoscoCS, Wan Hai, PIL and APL.
"The move comes just as the traditional transpacific summer peak season is due to start and it sends a negative signal to the market, at a time when carriers typically attempt to impose peak season surcharges," Alphaliner said.
More capacity coming
"The 2M withdrawal will, however, not mark the end of the carriers’ battle for market share, with at least one more transpacific service due to be introduced this year," it added.
It said these capacity additions will "negate the impact" of the 2M withdrawal, "setting the scene for further rate turbulence in the transpacific market in the coming weeks."
Spot rates have continued to weaken in the last two weeks, but various lines have nevertheless announced a fresh round of general rate increases for July, ranging from $700 to $1,000 per feu.
"Any initial success in securing these proposed hikes will likely be followed by rate discounting, as cargo space on upcoming sailings is reported to be available, even as the market is heading toward its traditional peak season," Alphaliner said.
