Nippon Yusen K.K., Japan's largest shipping line, reduced container service between Asia and Europe by 10 percent last month on falling demand, following similar cuts by Kawasaki Kisen Kaisha Ltd. Nippon Yusen will maintain the reductions until at least March, said Atsuto Kato, a spokesman for the shipping line in a telephone interview. The Nikkei newspaper reported the capacity cut earlier today.
Growth in Europe will slow next year after probably entering a recession last quarter, the European Commission said earlier this week. Kawasaki Kisen last month cut one of its 14 weekly sailings to Europe and reduced its service to North America along with Mitsui O.S.K. Lines Ltd. as demand for moving Asian-made toys, computers and furniture wanes.
Container traffic between Asia and the U.S. will likely drop 8 percent this year, the Transpacific Stabilization Agreement said last month. Traffic is unlikely to recover before the second half of next year, the shipping-line group said.
Shipping rates between Asia and Europe dropped 61 percent in October from a year earlier as the global financial turmoil discouraged spending, the South China Morning Post reported Oct. 10. Neptune Orient Lines Ltd., Southeast Asia's largest sea-cargo box carrier, last month announced a cut in capacity and said it will lay up ships because of lower rates and falling demand.
Kawasaki Kisen, also known as K-Line, and Mitsui O.S.K. last week lowered their profit forecasts for this fiscal year as rates for shipping commodities such as iron-ore and coal tumbled. Nippon Yusen kept its forecast unchanged.
The Baltic Dry Index, a measure of commodity-shipping rates, fell to its lowest since February 1999 yesterday as it declined for a 22nd day.
Nippon Yusen gained 10 percent to close at 515 yen in Tokyo trading today. Mitsui O.S.K. advanced 11 percent to 535 yen and Kawasaki Kisen rose 13 percent to 435 yen.
Growth in Europe will slow next year after probably entering a recession last quarter, the European Commission said earlier this week. Kawasaki Kisen last month cut one of its 14 weekly sailings to Europe and reduced its service to North America along with Mitsui O.S.K. Lines Ltd. as demand for moving Asian-made toys, computers and furniture wanes.
Container traffic between Asia and the U.S. will likely drop 8 percent this year, the Transpacific Stabilization Agreement said last month. Traffic is unlikely to recover before the second half of next year, the shipping-line group said.
Shipping rates between Asia and Europe dropped 61 percent in October from a year earlier as the global financial turmoil discouraged spending, the South China Morning Post reported Oct. 10. Neptune Orient Lines Ltd., Southeast Asia's largest sea-cargo box carrier, last month announced a cut in capacity and said it will lay up ships because of lower rates and falling demand.
Kawasaki Kisen, also known as K-Line, and Mitsui O.S.K. last week lowered their profit forecasts for this fiscal year as rates for shipping commodities such as iron-ore and coal tumbled. Nippon Yusen kept its forecast unchanged.
The Baltic Dry Index, a measure of commodity-shipping rates, fell to its lowest since February 1999 yesterday as it declined for a 22nd day.
Nippon Yusen gained 10 percent to close at 515 yen in Tokyo trading today. Mitsui O.S.K. advanced 11 percent to 535 yen and Kawasaki Kisen rose 13 percent to 435 yen.