*

Scheduled weekly service withdrawals show impact of US

trade

policies

*

MSC, COSCO and others deploy fewer ships from China to US

*

Container ship operators also cancelling individual

voyages

By Lisa Baertlein

LOS ANGELES, May 9 (Reuters) - Major container shipping

companies are suspending at least six scheduled weekly routes

between China and the United States as President Donald Trump's

punishing tariffs on the world's top exporting country collapse

trade, maritime consultants said.

The ships on those routes have the combined capacity to

deliver 25,682 40-foot containers stuffed with toys, tennis

shoes, car parts and things U.S. manufacturers use to produce

goods each week - or more than 1.3 million 40-foot containers a

year, based on capacity data provided in customer advisories.

The service cuts, coupled with cancellations of individual

voyages, come as hulking container ship operators move to

mitigate fallout from Trump's erratic trade policies.

Policy makers, economists, and business owners have become

increasingly hungry for information on ocean trade, responsible

for 80% of the world's commerce, because it is a gauge of global

economic health.

"This is not the precursor, it is the proof of a drop in

economic activity," Simon Sundboell, CEO of Danish maritime data

provider eeSea, said of the container vessel capacity reductions

now underway.

The route suspensions include scheduled weekly services

operated by MSC, Zim and the Ocean Alliance that includes Cosco

, Evergreen, CMA-CGM and Orient Overseas

Container Line (OOCL), Sundboell said.

Four of the service cuts affect West Coast ports, one

impacts the East Coast and one hits the Gulf Coast, he said.

The container shipping companies culling those services

either declined to comment or did not immediately respond.

Maersk and Hapag-Lloyd's ( HLAGF ) Gemini

Alliance have not suspended services - even though both partners

experienced significant tariff-related China to U.S. booking

cuts in April and have swapped out some ships for smaller

vessels.

Representatives from the U.S. and China are meeting this

weekend in Switzerland after more than two months of stalemate

over trade.

BLANKETY BLANK

Global shipping companies use service suspensions and

cancellations of individual voyages, known as blank sailings, to

shelter profits by ensuring they do not have more ships on the

water than are needed by customers. That reduces unnecessary

overhead costs and keeps supply and demand in balance,

supporting competing off-contract spot rates.

Blank sailings increased significantly after the COVID

pandemic upended global trade in 2020 - and are part of why

global container ship operators have been enjoying record

profits.

Major U.S. retailers like Amazon.com ( AMZN ) and Walmart ( WMT )

, which account for nearly half of global container

trade, responded to Trump's 145% tariffs on China last month by

pausing or cancelling factory orders after those import duties

more than doubled the cost of goods made in China.

Canceled, or blanked, individual voyages on the vital

Transpacific route from Asia to North America surged from 9% in

week ended March 30 to 24% in week ended May 4, maritime

consultancy Drewry said in a podcast earlier this week.

Drewry's data shows blank sailings reduced capacity on the

Asia to West Coast North America routes by 20% in April and 12%

so far in May.

The cuts hit slightly harder on the North American East

Coast, reducing 22% in April and 18% thus far in May, the

consultancy said.

MSC, the world's largest container ship operator, in April

canceled 30% of its scheduled Transpacific voyages - more than

any other container carrier, said Daniela Ghimp, project manager

for ocean freight rate benchmarking at Drewry.

The Premier Alliance, composed of Ocean Network Express

(ONE), Hyundai Merchant Marine (HMM) and Yang Ming Marine

Transportation, leads so far in May with a 20% blank sailing

rate, Ghimp said.

ONE declined comment, while HMM and Yang Ming did not

immediately respond.

The full effect of Trump's tariffs will likely be delayed

until July, when overall U.S. container import volume could be

down 25% or more from the year earlier, said John McCown, senior

fellow at the Center for Maritime Strategy.

"Something's gotta give, and I believe either considerably

more capacity will have to be culled, or spot rates will start

to crash," said Alan Murphy, CEO of supply chain adviser

Sea-Intelligence.