AP Moeller-Maersk A/S, owner of the world's largest container shipping line, will end a service linking ports on the eastern coasts of North and South America amid weakening demand on US routes.
Maersk Line will halt the so-called NASA service, where it buys container space on ships operated by Hamburg Sued of Germany between Newark in New Jersey and Buenos Aires. The service will end on Aug 17, the Copenhagen-based company said in a statement on Wednesday.
'The decision has been made based on the unprofitable cargo volumes in the trade and as a consequence of Maersk Line's ongoing efforts to optimise its network,' the company said.
Maersk chief executive officer Nils Smedegaard Andersen said last week that US routes would be 'very subdued' this year as weaker economic growth reduces North American trade. The company has cut capacity on some routes and agreed to cooperate with rivals. This week, it expanded a vessel-sharing agreement with CMA CGM SA of France on US-Europe services and formed one with Hamburg Sued on routes between North America and Australia.
Shares of Maersk fell 1.9 per cent to 47,600 kroner (S$12,600).
Maersk Line will halt the so-called NASA service, where it buys container space on ships operated by Hamburg Sued of Germany between Newark in New Jersey and Buenos Aires. The service will end on Aug 17, the Copenhagen-based company said in a statement on Wednesday.
'The decision has been made based on the unprofitable cargo volumes in the trade and as a consequence of Maersk Line's ongoing efforts to optimise its network,' the company said.
Maersk chief executive officer Nils Smedegaard Andersen said last week that US routes would be 'very subdued' this year as weaker economic growth reduces North American trade. The company has cut capacity on some routes and agreed to cooperate with rivals. This week, it expanded a vessel-sharing agreement with CMA CGM SA of France on US-Europe services and formed one with Hamburg Sued on routes between North America and Australia.
Shares of Maersk fell 1.9 per cent to 47,600 kroner (S$12,600).