Capacity of non-alliance carriers increased sharply on trans-Pacific services

Analysis of 13-week rolling average of capacity on Asia-North American West Coast routes over the past decade, disequilibrium between capacity of alliance carriers and capacity of non-alliance carriers has been seen very clearly since the outbreak of the pandemic.

After a period of stabilization with around 80% of the alliance's capacity share between 2012 and 2020, the alliance's capacity has sharply increased to nearly 90% in response to the pandemic. "Clearly, the immediate impact of the pandemic was that non-alliance services were much more likely to be blanked than alliance services," said Alan Murphy, CEO, Sea-Intelligence.

However, since the initial reduction of capacity to 10% on the Asia-West Coast North America service, the capacity of non-alliance carriers has increased again, accounting for 35% of capacity. For the Asia-East Coast North America services, alliances have dominated since 2019, but capacity by non-alliance carriers has also captured 10% market share since mid-2020.

“The development on Asia-Europe is starkly different than on Asia-North America. The market on this trade is nearly fully serviced by alliances," said Murphy. "The recent market disruption has done little to change this situation. A few non-alliance services have been seen; however, the number of such sailings and the small size of the vessels being used, means that this has an overall insignificant effect on the total capacity in the market.”

The difference between the two routes indicates lower barriers to entry in the Asia-North America route, he added.

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Source: Phaata.com (According to SeatradeMaritimes)

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