Maersk Line’s new daily Asia Europe service may force smaller firms out of the trade.

    Analyst Rigan Wong at Citi says the introduction of Maersk Daily is a negative game changer which will depress rates and erode the market share for others.

    He said: “The combination of mega-sized vessels that offer significant economies of scale, frequent departures from major ports, fixed schedules with refunds for late delivery; and no surcharge for reliability, may cause existing players with smaller ships or uncompetitive cost bases to exit the Asia-EU trade.”

    Maersk has introduced daily cut-offs on the Asia Europe route, on which it has placed 70 post-panamax boxships.

    Its 18,000-teu newbuildings will join the initiative when they are delivered from 2013. 
 

(source:asiasis)