Thursday, November 26, 2009

Asian Container Carriers To Reduce Shipping Capacity To US

“Slow Season” prompts cut back by Major Lines
Shipping News Feature

ASIA – US – Statements from K Line, Hanjin Shipping and partners, state that they will reduce container services between Asia and the North America due to the traditional slowing of traffic at this time of year. The reductions are believed to equate to around 20 percent for services to and from the US West Coast with the East Coast ports shedding 10%.

Many carriers are also negatively affected by the plunging yen which hit a fourteen year low yesterday against the dollar plus, for example in Hanjin's case, their recently released financial reports.

Other services affected will include cuts by COSCON and Yang Ming, who together with K Line and Hanjin form the CYKH alliance. The group state that rising fuel costs are also a factor in the cuts. On the 5th of November the same group joined other carriers in calling for rate rises to protect services.

The reduction in sailings comes just two days after CMA CGM announced the refinement of their Northern European services to and from the US and all the major shipping groups now seem to be proactive in changing schedules in line with short term analyses of TEU traffic having been so badly hit by the overall downturn in the past year or so.