Hede Shipping to launch third expedited service from China to LA

Hede Shipping in mid-July will launch its third expedited service from China to Los Angeles as the niche carrier seeks to expand its share of the trans-Pacific e-commerce market.

Although spot rates from Asia to the US continue to drop due to waning demand and overcapacity in the overall market, China-based Hede is zeroing in on the e-commerce sector with its expedited transit times and the quick delivery of containers upon discharge from vessels.

“The e-commerce market is already there. It’s here to stay,” Roger Zhang, COO of Duke Shipping, the exclusive agent for Hede’s trans-Pacific services.

Still, the new service that launches July 16 comes as e-commerce volumes, more typically the domain of the air cargo market, are under pressure in the trans-Pacific.

The US on May 2 eliminated the duty-free exemption for low-value shipments from China valued at under $800. Less than two weeks later, the US reduced the so-called de minimis tariff on low-value imports from 120% to 54%. Items sent via post from China to the US will be charged a flat fee of $100, regardless of value.

In 2024, e-commerce shipments accounted for about 50% of China-to-US air freight volume, according to rate benchmarking platform Xeneta. Since the duty-free status of low-value Chinese imports was revoked in May, the volume has declined.

Hede’s new service initially will be biweekly, with a 14-day transit time from Nansha in South China to Los Angeles. Last year, Hede phased in two weekly services from Shanghai to Los Angeles covering northern and eastern China, Zhang said.

The average transit time from China to Southern California for nonexpedited services ranges from 15 to 18 days. Average transit times from Shanghai to Los Angeles in May were 18 days, according to the latest data available from InforNexus.

Hede’s new Nansha service will begin with three container ships ranging in size from 3,000 to 4,000 TEUs. Vessels operated by the alliance carriers are generally 10,000-TEU capacity or higher.

At present, securing additional vessels is difficult, Zhang said. “The charter market is so hot,” he said.

Hede competes in the expedited service space with Zim Integrated Shipping Services and CMA CGM. UWL offers an expedited service from Southeast Asia to Seattle.

Expedited container handling landside in Los Angeles

As with its first two trans-Pacific services, vessels will call at the West Basin Container Terminal (WBCT) in Los Angeles. Hede offers a wheeled operation at WBCT and a dedicated chassis pool.

“Expedited containers are ready for pickup within 24 hours after discharge, offering a fast logistics solution for time-sensitive cargo,” Zhang said.

The spot rate from Shanghai to Los Angeles as of last Thursday was $3,741 per FEU, down 27% week over week and 36% from June 5, according to Drewry.