Monday, August 10, 2020
Hawai'i Free Press

Current Articles | Archives

Tuesday, October 13, 2015
American President Challenges Matson's Guam Monopoly
By Michael Hansen @ 2:49 AM :: 3866 Views :: Jones Act

by Michael Hansen, Hawaii Shippers Council, October 12, 2015

The American Shipper Magazine reported on October 12, 2015, that foreign-owned American President Lines Ltd. (APL) will inaugurate a new service from the U.S. West Coast to the U.S. islands of Guam and Saipan employing foreign-built U.S. flag containerships.

APL is a wholly-owned subsidiary of Singapore-based Neptune Orient Lines Limited (NOL) providing liner container and logistics services. APL is the 8th largest containership operator in the world. NOL was founded in 1968 as Singapore’s national shipping line wholly owned by the Government of Singapore. Today NOL is privately owned as serves as a holding company for APL. NOL acquired APL in 1997 as a result of a change in U.S. taxation known as Subchapter F which made it untenable for owners operating international services to remain domiciled in the U.S.

Guam (along with Midway and Wake Islands) is exempt from the U.S. ship build requirement under a provision in the coastwise law known as the “Guam Exemption.” Foreign owners are permitted to own U.S. flag ships operating in the foreign trade (as opposed to the domestic Jones Act trades). Saipan is the seat of government, largest settlement and main port in the Commonwealth of the Northern Mariana Islands (CNMI), which was exempted from maritime cabotage by the international treaty that provided for its annexation by the U.S.

APL announced on October 8th they would inaugurate on November 1st a weekly Transpacific service to be known as Eagle Express (EX1) employing six (6) foreign built U.S. flag containerships with a nominal capacity of 5,100 TEUs with port rotation of: Qingdao (China), Shanghai (China), Busan (South Korea), Los Angeles, Oakland, Dutch Harbor (Alaska), Yokohama (Japan), Busan, Naha (Okinawa) and Qingdao.

APL will link Guam and Saipan to their new Transpacific EX1 service at Yokohama with feeder service to be known as Guam Saipan Express (GSX) operating fortnightly (every two weeks) and employing a single foreign built U.S. flag containership with the capacity of 1,100 TEU. In addition to mainland U.S. cargo from EX1 transshipped at Yokohama, the GSX will carry local and other transshipment cargoes through APL’s extensive international network. The inaugural voyage of the GSX is scheduled to depart Yokohama on November 24th.

The APL Transpacific EX1 routing appears to be competitive on several levels and will provide real competition to Matson Inc. / Matson Navigation Company Inc. on two routing segments. The Westbound call at Dutch Harbor, Alaska, will be for the seafood exports from the Bering Sea fishery. The Westbound calls at Yokohama (Japan), Busan (South Korea) and Naha (Okinawa), employing U.S. flag ships will garner U.S military preference cargo for the U.S. bases at Yokosuka (Tokyo Bay), in South Korea and on Okinawa.

The fortnightly APL Guam Saipan Express (GSX) connecting at Yokohama will compete directly with Matson’s weekly containership service with calls directly from Los Angeles at Guam. Matson transships cargo from Seattle and Oakland at Honolulu and cargo bound for Saipan is transshipped at Guam. The less frequent APL service will likely be most competitive with Matson for those cargoes Matson transships en route to Guam and Saipan.

The APL Transpacific EX1 service will be competitive Eastbound (from Asia to the U.S. West Coast) with Matson’s China Express service. Currently Matson with their string of five U.S. built U.S. flag containerships offers the shortest cargo transit times from Shanghai to Los Angeles of 10 days for which they charge premium freight rates making their service feasible. APL’s EX1 will offer 13 days transit from Shanghai, which will be the 2nd fastest in the Transpacific behind Matson.

Finally, APL will be operating these services with significantly lower capital costs employing foreign built U.S. flag containerships.

It should prove very interesting to see how effective the APL services will be in competition with Matson at Guam and Transpacific Eastbound over time.

---30---

AS: APL unveils new transpacific loop

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

ALEC

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Ballotpedia Hawaii

Better Hawaii

Blaisdell Memorial Project

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

Coffee Break

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT