[EN-SEA] TNWA, Maersk to Cut Capacity on Transatlantic by 33 pct

MAERSK and The New World Alliance (TNWA) carriers, APL, Hyundai Merchant Marine (HMM) and MOL, have announced plans to reduce capacity on shared transatlantic services from December.

This comes as "TNWA and Maersk Line have been exchanging space in the transatlantic trade. The carriers have determined that market conditions require capacity reductions and service rationalisation in certain deployments.

Enhancements on other routes will ensure continued service reliability and rapid transit times for shippers," a statement from TNWA carriers said. Changes are expected to reduce existing capacity of TNWA and Maersk deployments in the transatlantic by 33 per cent.

The changes are as follows: the ATN/TA3-Maersk Line loop between the US east coast and Europe will be suspended from December 2009. Currently APL and HMM slot purchase space on this loop.

The port coverage of the US east coast-Europe segment of the APX/TA1-TNWA loop will be expanded to include additional calls at Antwerp and Le Havre.

For other issue but related with Maersk. South Carolina Port Authorities' (SCPA) decision to put Maersk Line's cost structure at Charleston on a "level playing field with other ocean carriers" has averted the departure of the world's biggest shipping line.

The settlement comes after SCPA's refusal to accommodate Maersk led to the Danish carrier reducing its call at the port by almost half by March. Under the new contract effective till 2015, Maersk will continue to operate from a dedicated part of the Wando Welch Terminal but "will occupy a smaller space", reports Charleston's Post and Courier newspaper.

Maersk took the decision when its request to shift to the "common use area" to save costs by employing SPA workers who worked at less than the union labour was turned down both by the SPA and the International Longshoremen's Association.

Source : HKSG, 24.10.09.