China Cosco Shipping, the G6 Alliance, and Ocean Three Alliance/Hamburg Sud AAE 3, have all cut back capacity on moves from China to the U.S. Shipping analyst Alphaliner said, “Carriers appear to have overestimated the demand growth for trans-pacific cargo and they are now forced to belatedly scale back capacity provision, total capacity removed will reach 16,000 TEUs per week, resulting in a 1 percent year-on-year reduction in overall trans-pacific capacity.” The timing of the reduction in capacity is surprising as it comes at the start of the traditional summer peak season, this suggests that carriers are intensifying efforts to manage overcapacity amid low spot rates after the conclusion of a tough contract season, where carriers took a huge hit on pricing.