[080711.EN.SEA] Sinking Demand Prompts New World To Suspend Transpacific Service

NEW World Alliance, comprising APL, Hyundai Merchant Marine (HMM) and MOL, has announced the withdrawal of the PSW Transpacific Service (Pacific Southwest Service) with the last eastbound sailing from Busan on July 14.

"Softening consumer demand is giving importers cause to retrench in regard to inventory levels previously planned for the upcoming holiday shopping season," said HMM vice president Lamont Petersen.

"Economic growth seems to be slowing to a crawl due to myriad factors, including the weak housing market, high unemployment, growing inflation and uncertainty surrounding possible federal austerity programmes in the United States.

"Volumes of imported goods are being negatively impacted," she said.

Running by HMM with a deployment of five 4,600- and 4,700-TEU ships, the PSW rotation for the PSW is Kaohsiung, Xiamen, Hong Kong, Shenzhen-Yantian, Busan, Los Angeles, Oakland, Busan and back to Kaohsiung.

The PSW is the second transpacific service to be suspended in a month in addition to CSAV's move to stop its ASIAM US west coast service at the end of June.

Source : HKSG, 08.07.11.