Ocean carriers are expanding their intra-Asia service connections as importers in the U.S. and Europe are looking to alternative sourcing markets within Southeast Asia instead of China. These new markets are providing opportunities for growth as demand for long-haul services has decreased and extra capacity is available. ONE’s CEO, Jeremy Nixon, stated that U.S. customers are trying to reduce their reliance on China, and the company needs to adjust its routes to cover other markets where U.S. shippers will increasingly source. Carriers such as MSC and Maersk have recently announced new intra-Asia services, and Pacific International Lines (PIL) has introduced a new hub and spoke link connecting ports in South China to Manila and Cebu in the Philippines. This development is seen as timely due to the strong Philippine economy and the implementation of the Regional Comprehensive Economic Partnership (RCEP) agreement, which is expected to benefit China-Philippines trade.
Source: The Loadstar