Part 4/8:
The current turmoil has not only led to the shuttering of many freight companies but has also disrupted major shipping routes across the Pacific. Shipping giants are responding to the crisis by withdrawing routes—42,000 TEU have been cut from LA service and 80 sailings cancelled due to plummeting orders. The freight rate for containers has tanked, with rates for West Coast containers falling by 30% in just a month.
As demand diminishes, we find that 53% of Trans-Pacific routes have been cancelled. This downward spiral means that resources in the shipping industry are becoming increasingly strained, with giant container lines such as Zim halting services for two months and operations like Matson's seeing significant cuts in scheduled voyages.