Danish shipping and oil group A.P. Moller-Maersk is taking eight container vessels out of service due to poor market conditions amid persisent downward pressure on freight rates.
The 6,500 twenty-foot equivalent unit vessels will be laid up until May or June next year, mostly in Asia, the company's container shipping unit Maersk Line said on Thursday.
"We have reached the point where laying up the eight vessels makes better economical sense than redeploying them," said Michel Deleuran, head of network and product at Maersk Line.
"Freight rates remain under severe pressure, and in several corridors the rates do not fully cover our variable costs. Rate improvements are imperative for the industry to create a sustainable environment," he added.
The 6,500 twenty-foot equivalent unit vessels will be laid up until May or June next year, mostly in Asia, the company's container shipping unit Maersk Line said on Thursday.
"We have reached the point where laying up the eight vessels makes better economical sense than redeploying them," said Michel Deleuran, head of network and product at Maersk Line.
"Freight rates remain under severe pressure, and in several corridors the rates do not fully cover our variable costs. Rate improvements are imperative for the industry to create a sustainable environment," he added.