HAIFA, Israel, August 21, 2023 — ZIM Integrated Shipping Services Ltd. has recently unveiled an exciting restructuring of its current services catering to the Oceania region. With the aim of enhancing service quality and better meeting customer demands, these changes are set to take effect in October 2023. The revamped services include adjustments to routes and rotations, promising a more efficient and comprehensive shipping experience.

Introducing the New Service Routes

Here’s a breakdown of the forthcoming changes:

ZAX – Northeast Asia – Australia: Formerly known as the MSC panda service, ZAX is set to replace the existing CAX service. The updated rotation will span from Pusan to Brisbane, encompassing major ports like Qingdao, Shanghai, Ningbo, and more. This change is poised to streamline connections and provide a more seamless trade experience between Northeast Asia and Australia.

Southeast Asia – Australia and New Zealand: ZIM’s TFX and N2A services will be succeeded by two new services, ZAO and ZOX.

• ZAO – ZIM Asia Oceania: This service will connect Laem Chabang, Singapore, Tanjung Pelapas, and Jakarta to key destinations like Brisbane, Sydney, Auckland, Lyttelton, and more. The enhanced route is expected to bolster trade between Southeast Asia and Australia/New Zealand.
• ZOX – ZIM Oceania Express: ZOX will link Singapore, Jakarta, Fremantle, Melbourne, Napier, Tauranga, Brisbane, and Tanjung Pelepas, facilitating efficient trade connections across these vital ports.

Influence on the Market and Future Implications

The strategic move by ZIM to join forces with MSC on their PANDA SERVICE has set off ripples in the market. Notably, the CAX service will be discontinued, resulting in the immediate removal of thousands of TEUs from circulation starting October. To counteract this, multiple carriers are poised to introduce rate hikes in the latter half of September.

GRI Changes and Market Dynamics

It’s apparent that the market is responding to these changes with recalibrations in rate structures. Some carriers, including PIL, have already announced General Rate Increases (GRIs), hinting at the evolving dynamics. Instead of opting for a single, substantial GRI, it appears carriers are leaning towards dual GRIs, each in the range of USD150.00 per TEU.

Path to a Resilient Freight Market

As the dust settles on these market shifts, analysts predict the culmination of a healthier freight market. The flurry of ultra-low FAK rates and long-term contract rates is anticipated to fade, and with two GRIs likely to be implemented in quick succession.

This transformation, spurred by ZIM’s strategic realignments, offers a promising future for trade between China and the Australia lane. With increased efficiency, streamlined connections, and a focus on sustainable rates, this marks a pivotal moment in the world of shipping and trade.

As October approaches, the shipping industry awaits the implementation of these changes and their subsequent impact on the global trade landscape.