Rising from Hanjin’s ashes is SM Line - with the potential to disrupt the fragile transpacific and intra-Asia markets.
South Korea’s SM Line has an initial six services covering North East Asia–South East Asia, Far East–India and transpacific routes and is said to be the fastest growing new carrier in container shipping history.
Since the start of 2017, it has launched four new Intra Asia services, more than any other carrier in this trade so far, this year. But despite the surge of volume on this trade, up by 23.5% for quarter one according to Container Trades Statistics, UK shipping consultant Drewry said that rates haven’t followed suit due to the imbalance of supply demand caused by so many new services, with SM Lines at the forefront. Over on the transpacific its strong impact is seen at port of Long Beach, which expects its container cargo volumes to jump by 7 per cent for the full year 2017, with a major reason being due to SM Line calling at its Pier T.
Long Beach CCO Noel Hacegaba said: ““SM Line has aggressive plans to grow market share in the trans-Pacific.
SM Line reportedly wants to grow a fleet of 110,000 container slots by next year, catapulting the carrier among the top 20 carriers.
Alphaliner consultancy said a few months ago that SM Line was expected to “disrupt the fragile market”, and evidence suggests that this could happen.