The chronic slump in global shipping has claimed its first major victim, with Hanjin Shipping scrapping the services of its German subsidiary, Senator Lines.
Shareholders of Senator Lines agreed on discontinuing its services, and Hanjin will pick up the carrier's slots.
Senator Lines said in a statement that after "careful consideration" of the need to rationalise its business in the face of a deteriorating shipping market and the global economic recession, "the shareholders and board of Senator Lines decided to process the service discontinuation".
According to PR News Service, Senator Lines will cease trading as of the end of February.
The decision was taken because of reduced volumes, overcapacity and the general poor market condition, especially on the East-West trade.
The board of Senator Lines prediction was a grim one: "There are no positive signals to be foreseen in 2009, nor are there any signs of freight rate improvements visible in the long term."
The carrier employs 171 staff worldwide, with 98 of those people based in German offices in Bremen, Hamburg, Munich and Dusseldorf.
Overseas, Senator Lines has offices in China, UK, Canada, Cyprus and Dubai.
All Senator Lines' offices in Germany will be closed, and staff will be assisted through company-initiated schemes with redundancy procedures.
The future of Senator Lines' services remains unclear, and much will depend on the carrier's partner lines.
The Bremen-headquartered company offered a total of 14 liner services, going on approximately 1,570 voyages a year, and was a specialist on the Asia - Middle East and Northern Europe trade lanes.
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