Changing world trade and shipping patterns are leaving California out of the party. In the latest blow to the state's international prestige, two lines operating transpacific routes have announced they are leaving out West Coast ports entirely. China Shipping is doubling its capacity on an all-water service between China and the East Coast via the Panama Canal, while Mediterranean Shipping Company (MSC) is cutting out Long Beach, up to now an automatic choice for its Far East strings.

Eight of China Shipping's 4,000 TEU ships are being used on the all-water service, with journey times of 23 days from Yantian to New York and Miami to Shanghai.
Analysts see the new service as a reaction to CMA CGM, its former ally, rejigging its routes and hooking up with Maersk.
CMA CGM is completely rerouting its transpacific West Coast and East Coast service to avoid the West Coast. The Asia to North America leg will go through Suez instead of the Panama Canal, which was previously used in both directions.
MSC is dropping two vessels and says the trip to New York will take 21 days from Singapore.
AXS-Alphaliner said the eliminated call to Long Beach "implies that the Freeport/Los Angeles segment, used to relaying North Europe and Mediterannean cargo to the US West Coast through connections with the North Europe-US Gulf service and the Med-US Gulf service, are replaced by new transhipment options."
California has some hope from the fact that MSC is using Los Angeles and Oakland for its first direct service from Vietnam, which will take 16 days from Cai Mep and 11 days from Yantian.
Of more importance is that NOL-APL, which has a much larger California presence than MSC, is also starting a direct Vietnam service, but is calling at Vancouver and Seattle and not bothering with the much bigger California ports.
"This is the beginning of a new era for trade with Vietnam and marks its increased importance as a manufacturing and export centre," said Eng Aik Meng, president of APL.
"The launch of the service is a recognition that Vietnam has not only established a strong market presence among the world's leading shippers and manufacturers, but it is delivering on its commitment to modernise transportation infrastructure, such as state-of-the-art port facilities capable of handling large deep-water containerships," Eng said.
While the pro-California lobby plays up the new Vietnam service as proof of the state's everlasting importance for trade, and shrugs off the APL snub as "win some, lose some", it is a bit premature to bring out the champagne to toast Vietnam as the new Asian supply centre for the US. Total Vietnam trade with the US is hitting US$20 billion, compared with $500 billion with China.
Instead, California should be looking at the continuing slew of bad news from its two main ports. Volumes at Long Beach-Los Angeles are forecast to fall 14 percent in 2009 to 12 million TEUs before rising a paltry 1.5 percent in 2010.
Coupled with this is a 20 percent decline in California exports in March, according to the latest figures from the US Commerce Department. Manufactured exports dropped 25 percent while agriculture and non-manufactured goods declined 14 percent, even though rice exports were way up.
Optimists of the glass half-full variety are saying that both the state and national trade woes have hit the bottom. Not so, says the National Association of Manufacturers, commenting on national export figures.
"The March data do not show signs that the trade decline has yet hit bottom," said Frank Vargo, vice-president for international economic affairs.
Exports of manufactured goods fell six percent from February to March while imports fell three percent, expanding the manufactured goods deficit slightly to $25 billion.
"In the capital goods sector, which accounts for close to half of US manufactured goods exports, declines were registered in 25 of the 32 categories," said Vargo.

(Copy CargonewsAsia)