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Japan's largest shipping firm, NYK Line, is cutting its container fleet transport capacity on its major routes, including Asia-North America, by an additional 10 percent this spring. The reductions will come through the scrapping of aging ships, as well as laying-up other vessels and suspending their operations, a company spokesman.
In addition to Asia-North America, the Asia-Europe route will also be affected by the additional capacity cut, the spokesman said, requesting not to be named.
The move comes as the international shipping market continues its rapid deterioration amid ongoing global financial turmoil.
The carrier earlier cut its container capacity on major routes, including Asia-North America, by about 10 percent from the peak level seen last summer, the spokesman said.
As a result of the additional cut, NYK's capacity will be reduced by a total of 20 percent on its major routes, compared with last summer, he said.
The spokesman did not disclose the specific number of container ships the company had operated as of last summer. It operated 155 container ships as of spring, 2008.
Domestic rival MOL is also expected to make an additional cut of around 10 percent in its container fleet transport capacity on its major routes, including Asia-North America, in April.
The reductions will shrink MOL's capacity by a total of 30 percent on the Asia-North America route and by 20 percent on intra-Asia and Asia-Southern Hemisphere routes, compared with last summer.
The Journal of Commerce Online
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