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ONE, ZIM, and TS Lines announce suspension! | Shipping and export logistics
Apr 25,2025
Ocean Line Shipping (ONE), ZIM and TS Lines have announced cuts to capacity across the Pacific in a wave of grounding triggered by plunging freight prices and trade policies that is reshaping the global logistics landscape.
As the head of the Asian shipping company, ONE took the lead in releasing the contraction signal: following the suspension of the PN4 route launched in May in early April, on April 23, it once again announced the postponement of the PS5 route which was originally planned to resume in the same period. These two are the adjustment of the trans-Pacific trunk line, which means that ONE will reduce the capacity of more than 10,000 TEU, and its cautious attitude reflects the pessimistic expectations of the US line market prospects.
ONE announces suspension of PN4 and postponement of PS5 routes
Hong Kong-listed Dexiang Shipping chose to "survive without arms" and formally suspended the independently operated AWC2 route. The route, which connects four major ports in southern China to Los Angeles, was originally planned to involve six 1750 TEU vessels, but it has been mired in weekly departures since early 2025 due to shrinking cargo volumes, and was finally terminated in mid-March after completing its last Asian voyage with the TS Tokyo vessel. However, its partnership with SeaLead's AWC Pacific route is still operating, maintaining service from East China to Los Angeles by sharing three vessels.
The most significant impact was on Star Shipping. Its 5500 TEU-class ZX2 route (Shanghai - Ningbo - Long Beach) due to the U.S. reciprocal tariffs led to a slump in bookings, coupled with spot rates plummeted 77% compared to July 2024, had to implement the last flight on April 9.
ZIM announces suspension of ZX2 route
It is worth noting that the day of the suspension coincided with the Trump administration's escalation of trade war measures, directly touching on the first wave of suspensions on Pacific routes. At present, the ship involved has been transferred to the ZEX route, and the new Vietnam Haiphong port, trying to hedge the loss of the US line through the "winding line to save the country."
Alphaliner data show that the three shipping companies this round of adjustment will reduce a total of about 18,000 TEU capacity. Industry analysts pointed out that this is both a passive response to shipping prices continuing to fall below cost lines and a strategic contraction in response to trade uncertainty between the United States and China, and more shipping companies are expected to join the "stop-and-restructure" process in the future, which could usher in an industry shake-up unseen in a decade on the trans-Pacific routes.
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