USSR: MERCHANT FLEET LINER OPERATIONS IN 1984

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• Document Page Count: 16
• Document Creation Date: December 22, 2016
• Document Release Date: November 30, 2009
• Sequence Number: 1
• Publication Date: June 1, 1985
• Content Type: REPORT

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Confidential
Agenda Item No. B-5 USSR: Merchant Fleet Liner
14 Operations in 1984
Working Group Paper
Office of Global Issues
Directorate of Intelligence
Confidential
GI M-85-10088
June 1985
Copy 0 9 3
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USSR: Merchant Fleet Liner
Operations in 1984
Summary The number of international cargo lines run by Soviet steamship compa-
nies pushed from 71 in December 1983 to a new high of 80 at the end of
1984. This represents a dramatic recovery since 1980 when the number
of lines dropped to 63 following withdrawal of Soviet lines from US trade
after the invasion of Afghanistan.
As in 1983, the number of lines in the cross trades between non-Soviet
ports exceeds the number in Soviet foreign trade. With most Soviet lines
operating outside the conference system, only six currently function as
conference members.
During 1984, the number of lines offering fast turnaround container, roll-
on/roll-off (ro/ro) , or barge carrier service rose from 47 to 59, leaving
only 21 that offer purely breakbulk service.
Twelve new lines were added and three old ones dropped. The new lines
will add little to competitive pressures on Free World shipowners. Ten
carry largely Warsaw Pact or Soviet client country cargoes; only two
carry cross trade goods in the commerce of developed countries.
Ten of the new lines, one using new feeder barge carriers, are fast
turnaround. In addition, service on three existing container or breakbulk
lines was upgraded by the assignment to them of ro/ro ships and
another existing breakbulk line began to offer container service.
Eight new large (over 7,500 deadweight tons) fast turnaround ships
joined the liner fleet in 1984 (four containerships and four barge
carriers) . No large ro/ro ships were acquired.
Soviet use of two of their largest ro/ro ships for inefficient short-haul
service to Western Europe ended in 1984 with assignment of the vessels
to the Baltic-Cuba run. In the Far East, major containerships continue to
be used for short voyages between Soviet Pacific ports and Japan.
In at least two important trades, disputes between nonconference Soviet
lines and ratesetting conferences whose members want to limit the
impact of Soviet rate cutting on their business caused problems in 1984.
Talks in June between Soviets and officials of the conference that
dominates trade between Europe and the Far East on possible Soviet
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membership in that conference accomplished nothing, and talks in July
with the conferences in the Europe-East Africa trade ended similarly.. No
comparable difficulties arose over the roles of Soviet carriers in the
Japan-Australia and Europe-Central America trades, which have been
trouble spots in the past.
ii Confidential
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USSR: Merchant Fleet Liner
Operations in 1984
Changes in the In 1984, the number of international cargo lines operated by the Soviet
Overall Liner Ministry of the Maritime Fleet pushed to 80, a new high. The previous
Network peak figure-74-was achieved in 1979, but in 1980 after the invasion
of Afghanistan Soviet lines in US trade had to be disbanded or rerouted,
causing a drop in the total to 63 (see tables 1-4).
Of the lines functioning at the end of 1984, 39 were services engaged
predominantly in the carriage of other countries' cross-trade cargoes.
Among the remaining lines, 33 were devoted chiefly to movements in the
USSR's foreign trade. The status of the remaining eight is unclear.
Soviet participation in ratesetting "conferences" remained at a low level
in 1984. Only six Soviet lines-all of them in the cross trades-were full
conference members, charging conference rates and accepting confer-
ence limits on sailings and cargo carried in the trades involved.
The pace of Soviet efforts to improve service on their cargo lines by
adding ships and cargo-handling systems that reduce ship turnaround
time in ports picked up in 1984. As a result, the number of lines offering
fast-turnaround service rose from 47 to 59. Among these, the number of
lines offering ro/ro service grew from 10 to 16; the number offering both
ro/ro and container service went up from 13 to 16; the number offering
container service increased from 23 to 25; and the number served by
barge carriers rose from one to two.
Services Added or The increase of nine in the number of Soviet international cargo lines
Dropped resulted from the opening of 12 new lines and the disbanding of three
preexisting lines.
There is no discernible geographic pattern among the 12 newly opened
lines. Most offer one or more forms of fast-turnaround service involving
the use of specialized ships and/or the carriage of cargo in containers.
25X1
In most cases, the opening of the new lines in 1984 will add little in the
way of cross-trade competition for West European and Japanese liner
operators. Seven are devoted largely to the carriage of Soviet bilateral
trade; three are essentially cross-trade services that benefit fellow
Warsaw Pact or client countries; and only two are cross-trade lines
whose obvious purpose is the earning of hard currency.
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Five of the new lines offer purely ro/ro service. These include: two
Estonian Steamship Company lines from Soviet Baltic ports-one to
Finland and one to Norway and Denmark, a Black Sea Steamship
Company line from the Black Sea to Egypt, a feeder service by a Baltic
steamship company ro/ro for the distribution of Soviet automobiles from
a terminal in Panama to customers in the Caribbean area, and a unique
seasonal service by ice-reinforced ships of the Murmansk Steamship
Company linking Soviet Baltic ports with the west coast of Canada via
the Northern Sea route.
Three other new lines offer container service. These include a cross-trade
line of the Black Sea Steamship Company between Cuba and India; an
Azov-based line from the Black Sea to North Africa, Spain, and the west
coast of Italy; and a container-carrying variant of the Far East Steamship
Company's Japan-Southeast Asia-India line.
The remaining new lines include a mixed ro/ro-container service by ships
of the Black Sea Steamship Company from Italy to Aqaba, Jordan; a
conventional breakbulk service of the same company from Southeast
Asia to Red Sea, Mediterranean, and West European ports; a joint
conventional service from Soviet Baltic ports to Cuba by ships of the
Baltic Steamship Company and Empresa Cubana; and an innovative
barge carrier feeder service of the Danube Steamship Company that
moves barges and containers with cargoes for or from Danube riparian
countries between the mouth of the Danube and ports on the Red Sea
and eastern Mediterranean.
The three lines that appear to have been disbanded during 1984 include
a Baltic Steamship Company service from the Baltic to Nigeria, a
Danube Company service from Soviet ports in the Danube delta to North
Africa, and a Black Sea Steamship Company ro/ro service from Soviet
Black Sea ports to Bulgaria, Greece, the west coast of Italy, Algeria, and
Libya.
Changes to Existing During 1984, three existing lines were upgraded by the assignment of
Lines ro/ro ships. They are the Soviet Baltic-Western Europe-Eastern Medi-
terranean (SAGA MEDITERRANEAN) service operated by the Estonian
Steamship Company, the same company's Soviet Baltic-east coast of
Sweden-Norway line, and the Latvian Steamship Company's RINELA
line from the Soviet Baltic, Western Europe, and the east coast of the
United Kingdom to the eastern Mediterranean. In addition, the Far East
Steamship Company upgraded its conventional FESCO STRAITS
PACIFIC line by offering container service.
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Some of the more important changes to the itineraries of existing lines in
1984 were: the adding of calls in Western Europe by ships on the Latvian
Steamship Company's Soviet Baltic-Ireland-west coast of United King-
dom ro/ro-container service; the addition of calls at Scandinavian ports
by ships of the Murmansk Steamship Company's ARCTIC line from
Communist Baltic ports and Western Europe to Canadian east coast and
Great Lakes ports; and the dropping of calls in Zaire by Estonian
Steamship Company ships on the line from Soviet Baltic and West
European ports to Angola.
Additions to the The number of major units added to the USSR's fleet of fast-turnaround
Liner Fleet vessels suitable for transoceanic service rose from five in 1983 to eight in
1984, bringing the total to 49 (see table 5). All of the ships acquired in
this category were cellular container ships and barge carriers. Although
large multipurpose ships with limited ro/ro capacity and small purely
ro/ro vessels under 7,500 deadweight tons (DWT) continue to enter the
fleet, no large specialized ro/ros have entered the fleet since 1982. The
large full container ships added in 1984 included two of the 16,000 DWT
East German-built Kapitan Gavrilov-class and two of the Bulgarian-built
Simon Bolivar-class-9,400 DWT. The Gavrilovs were both assigned to
major lines between Europe and the Far East; the Bolivars to Black
Sea-Mediterranean service.
During 1984, the fleet acquired its first feeder barge carriers, two units of
the 8,730 DWT Anatoliy Zheleznyakov-class built in Italy and two of the
8,640 DWT Boris Polevoy-class built in Finland. The new feeder barge
carriers will service a line from the mouth of the Danube to ports on the
eastern Mediterranean and the Red Sea.
Changes in Ship- No major changes occurred during 1984 in the employment of the larger
Use Patterns fast-turnaround ships that constitute the cutting edge of the USSR's liner
fleet (see table 6). The only shift among the 15 large ro/ro ships was the
transfer of two Magnitogorsk-class vessels from uneconomic short-haul
service between the Soviet Baltic and Western Europe to the long-haul
line from the Baltic to Cuba. As a result, all big Soviet ships of this type
are again being used on appropriately long routes.
No shifts of container ships larger than 7,500 DWT took place during the
year, but evidence of underemployment of certain units persisted. On the
USSR's Pacific coast, three Pula-class ships continued to operate on the
short-haul route between the ports of Nakhodka and Vostochnyy and
Japan.
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Relations With Although working arrangements between Soviet lines and their West
Western Shipowners European and Japanese competitors in certain trades have maintained
Over Rate Cutting commercial peace since 1983, new contention over Soviet rate cutting
and trade intrusion has led to friction in other key trades. The greatest
problem, according to West European and Scandinavian owners, exists
in Europe's trade with Southeast Asia and the Far East. Conference lines
in this trade belong to the powerful Far East Freight Conference (FEFC)
whose members were pressing for meetings with the Soviets at the end
of 1983. Conference member concerns center on the activities of the
Baltic Steamship Company's BALTORIENT container line which offers
weekly sailings between Western Europe, Southeast Asia, and Hong
Kong. At the end of 1984, 12 of the USSR's 22 largest container ships
were assigned to BALTORIENT. Spokesmen for West European ship-
owners claimed during 1984 that Soviet ships were moving 6 percent of
all possible trade on the route.
In June 1984, talks between Soviet merchant fleet officials and represen-
tatives of the FEFC over conditions for possible Soviet membership in the
conference broke down with no conclusive results. In September, the
conference announced a series of rate reductions. According to press
reports, these cutbacks are attributable more to competition from two
major nonconference Taiwanese steamship companies-Evergreen Mar-
itime Corporation and Yang Ming-than to the Soviet presence. The
Taiwanese container ships are much larger than the USSR's biggest and
their services are far more efficient.
The only other trade in which frictions between Western conference lines
and a Soviet line operating outside the conference system remain close
to the surface is that between Western Europe and East Africa where
rate cutting by the Baltic Steamship Company's Baltic-East Africa line
(BESTA) has been a sore point in the past. According to a recent OECD
report, BESTA carries about 13 percent of the liner cargoes moving from
Western Europe to East Africa. Talks during July between Soviet
merchant fleet representatives and conference officials in the East
African trade on proposed conference membership for BESTA ended in
a stalemate.
The May 1983 working arrangement between the Soviet Far East
Steamship Company and liner conferences in the Japan-Southeast
Asia-Australia trade that set a quota on Soviet participation in the trade
and a floor on Soviet rate cutting continued into 1984. During that year
the Soviet Far East Steamship Company agreed to raise the rates
charged by its Japan-Australia container service and asked in return for
an increase in its allotted share of the trade. This matter was to be taken
up at a meeting in Tokyo at the end of November between the Soviets
and conference spokesmen, but the outcome of that meeting, if it
actually occurred, is not known.
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In trade between Western Europe and Central America, where the
USSR's BALTCAPAS line operates under an agreement with the confer-
ences involved as a "tolerated outsider," no problems were reported
during 1984.
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Table I
USSR: International Cargo Lines Operated
Unilaterally by Soviet Steamship Companies,
31 December 1984
Soviet Baltic/Western Europe-Canadian St. Lawrence and Great Lakes
(ARCTIC LINE) a c
Murmansk
Soviet Baltic-Northern Sea route-west coast Canada d
Baltic
Soviet Baltic/Finland/East Germany-Mediterranean Europe-Australia
Soviet Baltic/Western Europe-Central America/Venezuela/West
Indies-Peru (BALTCAPAS) a c
Baltic
Panama-Caribbean (CARIBBEAN FEEDER SERVICE) d
Baltic
Soviet Baltic-Netherlands/Belgium-Finland (BALT-SCAN) ac
Baltic
Soviet Baltic-east coast United Kingdom (Hull) -West Germany-
East Germany d
Baltic
Soviet Baltic-West Germany-east coast United Kingdom (London)
(TRANS-SIBERIAN CONTAINER SERVICE) a c
Baltic
Soviet Baltic-Western Europe-United Kingdom-Cuba d
Baltic
Soviet Baltic-east coast United Kingdom (London) -Belgium-
Netherlands-Finland a c d
Soviet Baltic-Western Europe/east coast United Kingdom
(London) -Red Sea-Southeast Asia/Hong Kong (BALTORIENT) a c
Baltic
Soviet Baltic-Finland-Sweden-Italy-Greece-Western Europe
(SCAN-MED-CONT) a
Baltic/Latvian
Soviet Baltic/Western Europe-Portugal/Spain (PORTOBALTICA) a c d
Baltic/Estonian
Soviet Baltic/Western Europe-East Africa/Indian Ocean (BESTA)
Estonian
Soviet Baltic/Western Europe-eastern Mediterranean (SAGA
MEDITERRANEAN) ad
Estonian
Soviet Baltic-east coast Sweden-Norway-West Germany c d
Estonian
Soviet Baltic-Norway-Sweden-eastern Mediterranean
(SCANLEVANT) a
Estonian
Soviet Baltic-Finland-Denmark-Norway c d
Estonian
Soviet Baltic-Denmark-Norway d
Estonian
Soviet Baltic-Finland d
Estonian
Soviet Baltic-Western Europe-Angola d
Latvian
Soviet Baltic-east coast United Kingdom (London) -Western Euro-
pe-North Africa (RICONA LINE) a
Latvian
Soviet Baltic-Western Europe-Ireland-west coast United Kingdom
(Ellesmere Port) a c d
Denmark/Western Europe/east coast United Kingdom (London) -
eastern Mediterranean (RINELA) be d
Danube
Soviet Danube-Near East (Lebanon, Syria, Egypt, and Cyprus)
Danube
Soviet Danube-Greece
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Table I
USSR: International Cargo Lines Operated
Unilaterally by Soviet Steamship Companies,
31 December 1984 (continued)
Western Europe/west coast United Kingdom (Bristol) -Red Sea-
India/Pakistan (BLASCO INDOSTAN LINE) b c d
Soviet Black Sea-Persian Gulf d
Soviet Black Sea-Turkey-Jordan-Vietnam-Japan-Southeast Asia-Red
Sea-Mediterranean (BLASCO ORIENT) a c d
Black Sea Soviet Black Sea-Vietnam-Cambodia
Black Sea Soviet Black Sea-Cuba
Black Sea Cuba-South Asia a
Black Sea Mediterranean-Red Sea-Southeast Asia/Hong Kong-South Asia
(ODESSA OCEAN LINE CONTAINER SERVICE) a c
Black Sea Soviet Black Sea-Pakistan-India-Bangladesh-Sri Lanka-Red Sea-
Mediterranean (ODESSA OCEAN LINE)
Black Sea Southeast Asia-Red Sea-Mediterranean-Western Europe a
Azov Soviet Black Sea-Jordan d
Azov Soviet Black Sea-Greece-east coast Italy-Egypt (AZMED) a c
Azov Soviet Black Sea-Greece-east coast Italy
Azov Soviet Black Sea-Red Sea-East Africa-east coast Italy (AZRED)
Azov Soviet Black Sea-Turkey-Yugoslavia-east coast Italy-Greece
(ASADCO) a
Azov Soviet Black Sea-east coast Italy-Greece-Cyprus-Syria-Lebanon
(ADMED)
Azov Soviet Black Sea-Spain-west coast Italy-Greece (ASITCO) a c
Azov Soviet Black Sea-North Africa-Spain-west coast Italy
Azov Soviet Black Sea-east coast Italy-Greece-Turkey-Egypt a c
Caspian North Sea-Baltic-Iran (Caspian) (via Volga-Baltic Waterway)
(CASPIAN VOLGABALT LINE) a
Caspian Mediterranean-Iran (Caspian) (via Volga-Don Canal)
(MEDITERRANEAN CASPIAN LINE) a
Far East Hong Kong-Southeast Asia-Japan-Soviet Far East-west coast Canada
(FESCO STRAITS PACIFIC) a
Soviet Far East/Japan-Southeast Asia/India (FESCO INDIA
CONTAINER SERVICE) a
Far East Soviet Far East-Japan-Hong Kong-Philippines-Australia (FESCO
AUSTRALIA LINE) a
a An independent line operating entirely or predominantly in the
cross (or transit) trades.
b A conference line operating entirely or predominantly in the
cross trades.
Line offering full or partial container service.
d Line offering full or partial roll-on/roll-off service.
Line served by barge carriers.
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Table 2
USSR: International Cargo Lines Operated
Jointly by Soviet and Foreign Steamship
Companies, 31 December 1984
Soviet
Company
Route
Nationality of Foreign
Partners
Baltic
Soviet Baltic-east coast United Kingdom
(Hull/Tilbury) c d
Baltic
Soviet Baltic/Western Europe-east coast South America
(BALT AMERICA) b
Polish and East German
Estonian
Soviet Baltic/Western Europe-West Africa
(UNIAFRICA) b d
Polish and East German
Latvian
Soviet Baltic-East Germany c d
East German
Latvian
Soviet Baltic-France (Atlantic) c d
French
Latvian
Soviet Baltic-Netherlands a c
Dutch
Latvian
Soviet Baltic-Belgium a c
Belgian
Lithuanian
Soviet Baltic-West Germany
West German
Danube
Soviet Black Sea-Pakistan-India-Sri Lanka-
Southeast Asia (INTERLIKHTER) a
Bulgarian, Hungarian, and
Czechoslovak
Danube
Soviet Black Sea-eastern Mediterranean-Red Sea c e
Bulgarian, Hungarian, and
Czechoslovak
Azov
Soviet Black Sea-west coast Italy (ITAZOV)
Italian
Azov
Soviet Black Sea-Algeria
Algerian
a An independent line operating entirely or predominantly in the
cross (or transit) trades.
b A conference line operating entirely or predominantly in the cross
trades.
Line offering full or partial container service.
d Line offering full or partial roll-on/roll-off service.
Line served by barge carriers.
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Table 3
USSR: Changes in International Liner Network,
1979-1984
30 April 30 April 30 April 30 April 31 De- 31 De- 31 De-
1979 1980 1981 1982 cember cember cember
1982 1983 1984
Largely or entirely Soviet 26 25
Unclear 4 4
Predominantly cross 44
Conference 7
Independent 37
34
5
29
Cargo handling mode
Conventional breakbulk 32 28
Fast turnaround 42 35
Barge carrier 0 1
23 17
Mixed container and 0 0
barge carrier
Mixed container and 10 8
roll-on/roll-off
Table 4
USSR: Employment of International Cargo Lines,
31 December 1984
Soviet bilateral
33 13
Unclear
8 1
Cross and transit
39 7
Conference
6 1
Container
28
27 28
28
33
5
4 7
7
8
33
38 36
36
39
7
7 7
7
6
26
31 29
29
33
28
30 26
24
21
38
39 45
47
59
1
1 1
1
1
19
18 22
23
25
0
0 0
0
1
8
10 13
13
16
Ro/Ro
Mixed
Container
and Ro/Ro
Mixed
Container
and Barge
Carrier
Barge
Carrier
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Table 5
USSR: Fast-Turnaround Liner Vessels
Suitable for Transoceanic Services
Deadweight
(tons)
Container
Capacity
(TEUS) b
Speed
(knots)
Number in
Service
31 December
1984
Total
Deadweight
(tons)
Total
Container
Capacity
(TEUS)
49
823,320
41,076
Total fully cellular
27
380,000
19,756
container ships
Kapitan Gavrilov
16,000
940
21.6
8
128,000
7,520
Khudozhnik Saryan
14,500
732
20.8
10
5
47,000
2,100
60,000
3,693
148,000
6,192
a Including only vessels larger than 7,500 DWT and excluding
multipurpose ships.
b Twenty-foot equivalent units.
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Table 6
Disposition of Soviet Transoceanic Cellular
Container, Roll-on/Roll-off, and
Barge-Carrying Ships
Employment 30 April 1981
Container Ro/Ro
Barge-
Total
Container
Ro/Ro
Liner (by route)
carrying
Soviet Baltic-Western
Europe-South Asia or Southeast Asia/Japan
7
9
0
0 9
Soviet Baltic-Western Euro
-
t
pe
eas
coast 0
Canada and/or Caribbean
Soviet Baltic-Western Europe and/or 0
Mediterranean
0
2
1
0---- 3
Sovet Baltic-Mediterranean Europe- 0
Australia-New Zealand
Soviet Black Sea-South Asia or
Japan/Southeast Asia-Red Sea-Mediterranean
7
0
Soviet Black Sea-Mediterranean and/or 0
Cuba or Red Sea
Japan-Southeast Asia-Australia 4
Japan-Soviet Far East 3 0
0
3
2
0
0 2
Tramping coastal trade, unknown and 0 0
other
0
0
0
0
__
0
0
Employment
31 December 1983
Ro/Ro
Barge-
Total
Container
Ro/Ro
Barge- Total
Soviet Baltic-Western Europe-South Asia or
Southeast Asia/Japan
11
11
12
0
0 12
Soviet Baltic-Western Europe-Canadian east
coast and/or Caribbean
0
2
0
4
0 4
Soviet Baltic-Western Europe and/or
Mediterranean
2
Soviet Baltic-Mediterranean Europe-
Australia-New Zealand
0
Soviet Black Sea-South Asia or Japan/
Southeast Asia-Red Sea-Mediterranean
2
Soviet Black Sea-Mediterranean and/or Cuba
or Red Sea
0
Japan-Southeast Asia-Australia
4
Japan-Soviet Far East
3
3
0
0 3
Tramping coastal trade, unknown and
other
1
0
0
1 1
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