Hapag-Lloyd and CMA CGM are boosting their intra-Asia networks with new services and extra port calls. The updates in connectivity are taking place alongside alliance reshuffles, including the Gemini Cooperation partnership between Maersk and Hapag-Lloyd starting February 1.

Hapag-Lloyd’s updates include a Vietnam-Cambodia-China (VCS) service launching on January 18, linking ports in Southeast Asia to Gemini’s networks. It will also introduce the India Asia Express (IAX) service, connecting major Asian ports to Mundra in India. The service will integrate with the Gemini network through key hubs, enabling connections to North American-bound cargo. CMA CGM’s intra-Asia subsidiary, CNC Line, will restart its NKT service on January 15, reducing transit times between Thailand and Vietnam to South Korea.

The intra-Asia trade outlook remains uncertain, with Drewry analysts warning of a potential “rate war” if the region experiences no summer peak season. Over the past three years, the intra-Asia peak season has shifted from early summer to early fall, according to data from Xeneta and Container Trade Statistics (CTS), and it resembles East-West mainline trends.

Stijn Rubens, a senior consultant at Drewry, predicts rates will soften until the mid-second quarter due to sluggish demand and the absence of a pre-Lunar New Year peak. He also notes that new carrier alliance structures in the first half of 2025 could increase competition, potentially driving rates down further as they are still above pre-COVID levels.

Source: Journal of Commerce