CStar Line is going out of business, two years after commencing operations. The Dubai-based liner operator emerged in the scene, joining a host of opportunistic newcomers seeking a share of routes to Russia as mainstream operators vacated following Russia’s invasion of Ukraine.
CStar and its Chinese affiliate STF Shipping appear to have become the latest operator to be hit by weakening cargo volumes to and from Russia. Since 2023, Russian trade has been feeling the heat from sanctions and freight rates have been flat, ranging from $900-$2,800 per 40-foot container.
CStar seemed to be in trouble in August after liner shipping consultancy eeSea disclosed that the operator had suspended one Asia-Europe and three Asia-Middle East services, ending its involvement in Russian routes and standalone services on any major trade.
Chinese media reports claimed that CStar owed around US$10.9 million in service fees to Russian stevedoring companies. CStar’s closure came three months after it started a FRS1 China-Red Sea service, connecting Ningbo, Shanghai and Nansha to the Red Sea.
Shipping consultancy Linerlytica said in its report this week that five of the eight 1,100-2,200 TEU ships that CStar and STF operate on the Russia and Red Sea related routes have been idled over the last three weeks, with the three remaining ships facing an uncertain future. Linerlytica’s data shows that 69 ships with total capacity of 73,314 teu are in the Russia Far East trade, down 23% year-on-year.
Ship operators specialising in East Asia-Russia shipments told HANSA that expectations of a spike in volumes ahead of the Golden Week and Thanksgiving holidays in China and South Korea did not materialise. One executive from Sinokor Merchant Marine said: “This year, the market isn’t in our favour. Some operators even blanked sailings this month to as volumes were disappointing.”
Korea Customs’ data shows that in September, cargo transported from Busan to Far Eastern Russian ports, including Vladivostok, amounted to 6,920 teu, a 5% decrease from August. (PL)
