Mitsui, K-Line to cut US container service
Mitsui OSK Lines Ltd and Kawasaki Kisen Kaisha Ltd, Japan's second- and third-largest container-ship operators, will reduce weekly container service to North America from Asia as demand for exports declines.
Mitsui OSK. will cut service to 12 sailings from 14 this month, spokesman Hidenori Onuki said in Tokyo yesterday. Kawasaki Kisen, also known as K-Line, will drop one of seven weekly sailings to the United States east coast this month, spokesman Masato Yamaguchi also said by telephone yesterday. The Nikkei newspaper reported reductions recently.
Global growth is headed for a 'major downturn' next year, as US gross domestic product growth may slow to 0.1 per cent, the International Monetary Fund said last week.
Container shipments to the US are tumbling at their fastest pace in more than a decade as the housing market slumps. 'Demand for cargo space from Asia to the US has decreased as US consumption has been dropping since the middle of last year,' said Mr Onuki.
K-Line will also cut one of its 14 weekly services to the Mediterranean and Europe from this month, Mr Yamaguchi said. The shipping line may put the ship into dry dock, he said.
Mitsui OSK is reducing container ship services as it moves to its winter schedule one month earlier than last year, Mr Onuki said.
Asian container shipments to the US fell 10.8 per cent in July compared with a year earlier, following a 14.2 per cent tumble in June. It was the first back-to-back, double- digit drop since at least 1995, according to the Japan Maritime Center.
Mitsui OSK. had its biggest one-day gain since 1987 yesterday as government plans to support banks worldwide boosted confidence that the global financial industry will avoid collapse. The shipping line soared 17 per cent to 673 yen at the close of trading in Tokyo yesterday. Kawasaki Kisen rose 16 per cent, its biggest gain since August 2003, to 498 yen. The Nikkei 225 Stock Average rose 14 per cent, its biggest ever gain.
Mitsui OSK. will cut service to 12 sailings from 14 this month, spokesman Hidenori Onuki said in Tokyo yesterday. Kawasaki Kisen, also known as K-Line, will drop one of seven weekly sailings to the United States east coast this month, spokesman Masato Yamaguchi also said by telephone yesterday. The Nikkei newspaper reported reductions recently.
Global growth is headed for a 'major downturn' next year, as US gross domestic product growth may slow to 0.1 per cent, the International Monetary Fund said last week.
Container shipments to the US are tumbling at their fastest pace in more than a decade as the housing market slumps. 'Demand for cargo space from Asia to the US has decreased as US consumption has been dropping since the middle of last year,' said Mr Onuki.
K-Line will also cut one of its 14 weekly services to the Mediterranean and Europe from this month, Mr Yamaguchi said. The shipping line may put the ship into dry dock, he said.
Mitsui OSK is reducing container ship services as it moves to its winter schedule one month earlier than last year, Mr Onuki said.
Asian container shipments to the US fell 10.8 per cent in July compared with a year earlier, following a 14.2 per cent tumble in June. It was the first back-to-back, double- digit drop since at least 1995, according to the Japan Maritime Center.
Mitsui OSK. had its biggest one-day gain since 1987 yesterday as government plans to support banks worldwide boosted confidence that the global financial industry will avoid collapse. The shipping line soared 17 per cent to 673 yen at the close of trading in Tokyo yesterday. Kawasaki Kisen rose 16 per cent, its biggest gain since August 2003, to 498 yen. The Nikkei 225 Stock Average rose 14 per cent, its biggest ever gain.