In response to increased demand and rising freight rates from Asia to the U.S., ocean carriers are reintroducing capacity on the Far East to North American trades. This move reflects growing confidence in the strength of Trans-Pacific demand.

Maersk and Hapag-Lloyd have announced a new express service to the U.S. West Coast, starting June 24 from Xiamen, China. This 18-day transit service will connect China and South Korea to the U.S. West Coast under their Gemini Cooperation agreement. MSC plans to resume its Empire service to the U.S. East Coast by mid-June, connecting connecting Shanghai to New York along with weekly departures scheduled through July.

These service additions follow a sharp turnaround in demand. Earlier this year, carriers reduced capacity when U.S.-China tariffs halted bookings. However, after a 90-day tariff break was implemented, spot rates increased dramatically.

Data from eeSea indicates that 1.268 million TEUs of capacity are scheduled between Asia and the U.S. West Coast in June, reflecting a 34,000 TEU increase from May. Additionally, the number of blank sailings will also be at its lowest level since June 2024. It is anticipated that it will take until July for new capacity to ease rate pressure, as many ships have been diverted to other routes.

Alphaliner analyst Tan Hua Joo noted that certain carriers, including Maersk and Hapag-Lloyd, are better positioned to address the renewed demand as they did not withdraw ships during the slowdown. “I expect there will be sufficient space available in the market as Trans-Pacific capacity will return very quickly and all carriers are adding ships over the next three weeks, apart from the Gemini carriers who have not withdrawn any ships from the Trans-Pacific during the turmoil of the last five weeks,” Hua Joo stated.

Source: Journal of Commerce