Daily Maersk fails to meet expectations, faces more competition

"DAILY Maersk", once thought revolutionary when introduced three years ago, has not lived up to expectations, failing to outstrip competitors on the Asia-North Europe trade, according to Paris-based Alphaliner analysts.

Competitors have also lined up to increase sailing frequencies through expanded alliance and slot arrangements.

Along with upsizing deployed tonnage, this will allow them to approach the performance of "Daily Maersk" that offers daily sailings and delivery time guarantees, both in terms of network coverage and unit costs, said the Alphaliner note.

A loose grouping composed of seven carriers in the Asia-Europe trade has also begun to emerge. The five carriers of the CKYHE that now includes Evergreen have concluded various slot swap deals with CSCL and UASC.

The agreements will allow the seven shipping lines to offer up to eight Asia-North Europe sailings each week.

The only casualty appears to be Israeli shipping line Zim, which is quitting the AEX1 service that it runs with CSCL and could be forced to exit the trade. Zim has been in talks to join one of the revamped shipping alliances, but the carrier is running out of time and options.

The 'Daily Maersk' also failed to raise average freight rates and instead triggered the fiercest rate war that the trade has ever seen.

The product's launch in late 2011 coincided with the first time that base rates on the Asia-Europe route sank below zero - after deducting the BAF - and freight rates have remained low ever since.