TS Lines will withdraw from the transpacific trade next month, joining a growing list of niche carriers exiting the route amid falling freight rates and rising operational costs.
According to Asia-based consultancy Linerlytica, the carrier will pull its sole vessel from the Asia–US West Coast (AWC) service, which it currently operates jointly with SeaLead and KMTC. The 2,954 TEU TS Tacoma will complete its final AWC rotation at Busan on October 29 and will then be redeployed to the China–Australia CA3 service.
The move comes at a challenging time for smaller operators on the tradelane. Transpacific spot rates have plummeted nearly 60% year-on-year, eroding profitability and forcing carriers to reassess their market exposure.
Further pressure has emerged from the new US port fees on China-linked tonnage, which take effect today. These higher charges are expected to disproportionately affect niche and independent operators with limited scale.
China’s Hede Shipping has also scaled back its transpacific presence ahead of the new fee implementation, signalling a broader retrenchment by smaller carriers as market conditions deteriorate.
With demand softening and costs rising, analysts warn that more exits or consolidations may follow unless pricing recovers in the coming months.