Analyst calls for more of the same as O3 group chops loop
The Ocean Three liner alliance has become the first to stumble on the challenged Asia-Europe route but liner analysts are calling for even more radical measures after it announced that it is cutting capacity.
Feeble demand, collapsing rates and a parade of newbuilding deliveries have brought a call from Paris-based analyst Alphaliner for all four major liner groupings to slash capacity on the route by eliminating a service each.
Ocean Three partners CMA CGM, China Shipping Container Lines (CSCL) and United Arab Shipping Co (UASC) announced last week that, starting in June, they will cut the equivalent of one loop from their Asia-Northern Europe service for 12 weeks.
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