The Containership Company postpones Asia-Europe entry /20.04.2010

The Containership Company (TCC) has said it is delaying its Asia-Europe service because the European economic recovery does not look robust enough to absorb new capacity flowing into the trade lane.

The start-up TCC's existing Great Dragon Service, already in operation, is a "no-frills" port-to-port 14-day shuttle from Taicang near Shanghai to Los Angeles. It deploys five ships in the 2,700-3,000 TEU range. Recent figures from Paris-based analyst Alphaliner show deliveries of new containerships set to surge in the summer, following the arrival of 70 vessels in the first quarter. TCC chief operating officer Franck Kayser told London's International Freighting Weekly (IFW) the company had originally intended to launch an Asia-Europe service, but had pulled back in recent weeks.

But he said the line was still looking to charter more ships and had ambitions to enter the Asia-Europe trade. "We had plans and we still have plans, but there is an influx of capacity," Mr Kayser said. "We are also concerned that it will impact the European economy and consumer resilience. Things in Europe look good now, but one day things could fall," he said, adding that rates were in a fragile state.

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