In a sign of further deterioration on the key Asia-Europe trades, two of the world’s largest shipping lines, Maersk Line and Orient Overseas (International), have announced significant cuts in services.
China’s OOIL cut its capacity on the trade by 20% in the third quarter, a senior executive told the media at a shipping conference in Hong Kong on Friday.
According to a report in IFW’s sister publication, Lloyd’s List, Chairman Tung Chee Chen said the cuts were made because of “lower demand” and the impact on trade from the eurozone debt crisis.
One loop from the Grand Alliance Asia-Europe service has been cut. The alliance will now operate three loops with 10 containerships on each. Grand Alliance members include OOIL box operator OOCL, Hapag-Lloyd and NYK.
Maersk Line will merge its Icon service, which links the Far East and the Indian subcontinent to Northern Europe, with its Asia-Europe Daily Maersk network.
The line will create a dedicated feeder link between the Bangladeshi port of Chittagong and Tanjung Pelepas in Malaysia to provide access to the Daily Maersk service.
Maersk said that the rationalisation would help in its efforts to establish a more balanced supply/demand scenario on the Far East to North Europe trade.
The moves by Maersk and OOIL come on the heels of similar steps taken by smaller container lines last week. As reported in IFW, MISC announced it would would quit the liner business after losing $789m in the past three years.
And troubled Israeli container carrier Zim is actively considering consolidation as a possible way out of its continuing financial difficulties.
China’s OOIL cut its capacity on the trade by 20% in the third quarter, a senior executive told the media at a shipping conference in Hong Kong on Friday.
According to a report in IFW’s sister publication, Lloyd’s List, Chairman Tung Chee Chen said the cuts were made because of “lower demand” and the impact on trade from the eurozone debt crisis.
One loop from the Grand Alliance Asia-Europe service has been cut. The alliance will now operate three loops with 10 containerships on each. Grand Alliance members include OOIL box operator OOCL, Hapag-Lloyd and NYK.
Maersk Line will merge its Icon service, which links the Far East and the Indian subcontinent to Northern Europe, with its Asia-Europe Daily Maersk network.
The line will create a dedicated feeder link between the Bangladeshi port of Chittagong and Tanjung Pelepas in Malaysia to provide access to the Daily Maersk service.
Maersk said that the rationalisation would help in its efforts to establish a more balanced supply/demand scenario on the Far East to North Europe trade.
The moves by Maersk and OOIL come on the heels of similar steps taken by smaller container lines last week. As reported in IFW, MISC announced it would would quit the liner business after losing $789m in the past three years.
And troubled Israeli container carrier Zim is actively considering consolidation as a possible way out of its continuing financial difficulties.