Grand China Shipping drops second transpac loop as seasonal slack lingers

GRAND China Shipping (GCS) has closed one of its two transpacific loops, which has been ensured since July within a double loop butterfly service deploying a common set of nine ships.

GCS had inaugurated its independent transpacific service (Super Pacific Express - SPX) in April, using five 2,700-2,900 TEU ships. The inaugural SPX connected Hong Kong, Shenzhen-Yantian, Ningbo and Shanghai to Long Beach.


The service was split into two loops in May, with one focusing on Central China (SPX) and the other on (Pearl River Delta-Pacific Express (PPX) in south China.


Each loop deployed five ships of 2,500-2,800 TEU. Calls at Xiamen, Qingdao, Busan and Oakland were added as a result of the additional loop.


In July, the SPX and PPX were connected to form a new butterfly pattern, calling at Xiamen, Hong Kong, Shenzhen-Yantian, Long Beach, Oakland, Qingdao, Ningbo, Shanghai, Busan, Long Beach, Oakland and back to Xiamen.


The new double-sling was operated with a fleet of nine ships in the 2,700 TEU range, alternating between the two loops, compared to a fleet of 10 ships used when the two loops were operated separately.


Low load factors and weak peak-season demand on the transpacific route have now induced Grand China to close one of its loops.


From this month calls at Hong Kong, Xiamen, Qingdao, Busan and Oakland will be dropped as four ships of 2,500-2,800 TEU are withdrawn.


The revised SPX calls at Shenzhen-Yantian, Ningbo, Shanghai, Long Beach, Yantian, using five ships offering a weekly capacity of 2,765 TEU, against 5,520 TEU for the former butterfly loops, according to Alphaliner figures. This is the seventh transpacific loop to be withdrawn this year.