 Zim returns to West Coast with expedited service |
Source |
American Shipper |
Post Date |
06/09/2020 |
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Responding to retailer demand for time-definite, expedited services priced lower than air freight, Zim Integrated Shipping Services this month will launch its Zim eCommerce Xpress (ZEX) service with a 12-day transit from South China to Los Angeles.
The ZEX service, with calls at Da Chan Bay and Yantian, will launch June 22. It also marks the return of Zim to the US West Coast with a product it hopes will differentiate the indepent carrier from the larger lines that operate mega-ships in vessel-sharing alliances.
¡°We always had a keen interest in returning to the US West Coast, but it all deps on scope and scale,¡± George Goldman, president of Zim USA, told JOC.com Tuesday. ZIM last called in California with its own vessels in February 2015.
The larger alliance-based carriers that dominate the trans-Pacific generally operate vessels of 12,000 to 14,000 TEU capacity in multiple trans-Pacific services. But Zim, an indepent line, is looking to carve out a niche targeting shippers of higher-value merchandise requiring expedited service to the largest US port complex.
ZIM¡¯s five vessels of up to 6,000 TEU capacity will call at West Basin Container Terminal (WBCT) in Los Angeles. Through its relationship with WBCT, Zim will complement its 12-day transit time with expedited handling of containers for inland transport by truck or rail, Goldman said. Zim will release the size of the vessels shortly, but they will be capped at 6,000 TEU capacity due to berth limitations.
Blank sailings disrupt supply-chain planning
Due to plunging consumer demand in the US resulting from the coronavirus disease 2019 (COVID-19), carriers since February have reduced total capacity from Asia to the West Coast by 17.3 percent, according to Sea-Intelligence Maritime Analysis. However, by canceling dozens of sailings, carriers have disrupted the supply chains of retailers, making it difficult to fulfill delivery dates. That has d a demand for guaranteed services that Zim is looking to tap into.
¡°We listened to our customers and we made it happen,¡± Eli Glickman, Zim CEO, said Tuesday in a statement.
Matson Navigation, APL, and THE Alliance offer expedited services with 10-to-12-day transit times from Japan, North Korea, or Shanghai to Southern California, but Goldman said Zim is alone in offering a 12-day transit from South China to Los Angeles.
The ZEX service targets higher-value shipments from factories in South China that can command a premium ocean price for expedited service, but cannot bear the higher cost of air freight. The exact savings will dep on the specific merchandise being shipped and the weight of the cargo, but the ZEX freight rate will be a ¡°major savings¡± compared to air freight, Goldman said.
The carrier¡¯s ZIM Logistics affiliate, in partnership with WBCT, will arrange expedited handling of containers at the terminal, as well as inland transportation connections. Vessels will leave each Wednesday from Yantian, with cargo availability 12 days later on Mondays. Intermodal rail connections will be available to destinations including Chicago, Memphis, Dallas, Kansas City, and New York.
Initially, the ocean and land transportation components will be separate, but Goldman said the service may be refined later into a sea-air shipment with a single bill of lading to interior US destinat
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