Nippon Yusen KK, Japan's largest shipping line, reduced container service between Asia and Europe by 10 per cent last month on falling demand, following similar cuts by Kawasaki Kisen Kaisha Ltd.
Rough waters: Nippon Yusen's capacity cut follows that of Kawasaki Kisen Kaisha, Mitsui OSK and NOL as growth in Europe slows
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 yesterday.
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 OSK Lines Ltd as demand for moving Asian-made toys, computers and furniture wanes.
Container traffic between Asia and the US will likely drop 8 per cent 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 per cent in October from a year earlier as the global financial turmoil discouraged spending, the South China Morning Post reported on Oct 10. Neptune Orient Lines Ltd, South-east Asia's largest sea-cargo box carrier, last month announced a cut in capacity and said that it will lay up ships because of lower rates and falling demand.
Kawasaki Kisen, also known as K-Line, and Mitsui OSK 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 on Tuesday as it declined for a 22nd day.
Nippon Yusen gained 10 per cent to close at 515 yen in Tokyo trading yesterday. Mitsui OSK advanced 11 per cent to 535 yen and Kawasaki Kisen rose 13 per cent to 435 yen.
Rough waters: Nippon Yusen's capacity cut follows that of Kawasaki Kisen Kaisha, Mitsui OSK and NOL as growth in Europe slows
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 yesterday.
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 OSK Lines Ltd as demand for moving Asian-made toys, computers and furniture wanes.
Container traffic between Asia and the US will likely drop 8 per cent 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 per cent in October from a year earlier as the global financial turmoil discouraged spending, the South China Morning Post reported on Oct 10. Neptune Orient Lines Ltd, South-east Asia's largest sea-cargo box carrier, last month announced a cut in capacity and said that it will lay up ships because of lower rates and falling demand.
Kawasaki Kisen, also known as K-Line, and Mitsui OSK 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 on Tuesday as it declined for a 22nd day.
Nippon Yusen gained 10 per cent to close at 515 yen in Tokyo trading yesterday. Mitsui OSK advanced 11 per cent to 535 yen and Kawasaki Kisen rose 13 per cent to 435 yen.