OOIL ready to cut 25pc of capacity in Q1
Hong Kong's Orient Overseas (International) Ltd (OOIL) volumes will decline 20-30 per cent in January and February because of the global economic downturn, according to company chairman Tung Chee-chen.
To cope, OOIL, parent of Orient Overseas Container Line (OOCL), will reduce shipping capacity by up to 25 per cent in the first quarter, returning 13 to 14 chartered ships after contracts end this year.
"Taking into consideration the figures for January and February, 2009 will be a very difficult year," said Mr Tung in an interview with Reuters.
Already, the New World Alliance, of which OOCL is a part with APL, Hyundai, MOL, Hapag-Lloyd, MISC and NYK, has announced the suspension of its Black Sea service.
The EBX operated since last-June and deployed eight ships each in the 5,000-TEU range. The last westbound sailing of the EBX departed Shanghai on February 12.
"This service change is in response to the global economic slowdown that has led to reduced customer demand," OOCL said.
To cope, OOIL, parent of Orient Overseas Container Line (OOCL), will reduce shipping capacity by up to 25 per cent in the first quarter, returning 13 to 14 chartered ships after contracts end this year.
"Taking into consideration the figures for January and February, 2009 will be a very difficult year," said Mr Tung in an interview with Reuters.
Already, the New World Alliance, of which OOCL is a part with APL, Hyundai, MOL, Hapag-Lloyd, MISC and NYK, has announced the suspension of its Black Sea service.
The EBX operated since last-June and deployed eight ships each in the 5,000-TEU range. The last westbound sailing of the EBX departed Shanghai on February 12.
"This service change is in response to the global economic slowdown that has led to reduced customer demand," OOCL said.