Maersk announces: Resumption

Starting from mid-April, the Danish shipping giant will restart the TP20 route, running through Greater China from north to south, and then direct flights, extending the service scope to destinations such as Newark, Baltimore and Houston to meet more customers transportation needs.

Maersk noted in a statement that as an independent service, TP20 will provide stable weekly departure times and competitive transfer times.

The order of ports of call for Maersk TP20 route is Qingdao-Shanghai-Yantian-Panama Canal-Newark-Baltimore-Houston-Panama Canal. The "Maersk Wallis" will make its maiden voyage in Qingdao Port on April 21.

With only 10 months remaining in the ship-sharing agreement, Maersk and MSC are actively looking for independent east-west route service opportunities outside the 2M alliance. However, Maersk's twin partnership with Hapag-Lloyd from February next year will add complexity to its decision-making, while MSC's independent services as a non-alliance member are likely to maintain the status quo.

Recently, U.S. container imports surged in February, Panama Canal transit restrictions were slightly relaxed, and spot freight rates were at least twice what they were a year ago. These factors have combined to prompt Maersk's decision to resume TP20 services from China to the U.S. East Coast next month .

As early as August 2021, Maersk launched a "premium" loop service, deploying 4,500TEU Panamax ships, in addition to the space swap and ship sharing agreement between 2M and Zim, aiming to benefit from a market that was as high as $20,000 per 40 feet at the time. Benefit from the rates. However, last month Maersk announced a "temporary suspension" of TP20 services in anticipation of "reduced global demand."

But on April 21, the adjusted TP20 will make its maiden voyage in Qingdao with the 4334TEU "Maersk Wallis" built in 2010. The ship will also load cargo in Shanghai and Yantian and head to Newark, Baltimore and Houston on the eastern U.S. and Gulf Coast.

At the same time, senior shipping analyst John McCown's analysis of imports from the top ten container ports in the United States in February showed that the volume of imported containers surged 25.3% year-on-year to 1.833 million TEU. Although this increase is eye-catching and shows potential economic vitality, McCown also pointed out that due to the later Chinese New Year this year than in previous years and the impact of the leap year in 2024, import volume growth in February was affected to a certain extent.

Additionally, McCown's analysis revealed a reversal in the movement of cargo from west to east coasts. In February, import volumes at U.S. Pacific ports increased 39% year-on-year, while growth at U.S. Eastern and Gulf Coast ports was more modest at 14.6%. He further pointed out that some of the freight traffic diverted to the East Coast has been redirected back to West Coast ports, exacerbating recent fluctuations along the coast.

Perhaps another factor influencing Maersk's decision to resume its TP20 routes is the extension of some Asia-to-US East Coast routes due to the Red Sea crisis, coupled with the uncertainty of East Coast labor contract negotiations, and the existing relationship between the International Longshoremen's Association (ILA) and the American Maritime Alliance. There is an agreement that will expire on September 30. These factors together indicate that the peak season may arrive early this year. Therefore, Maersk restarted TP20 services to meet the growth of market demand and respond to potential industry changes.