Safmarine to exit transpacific trade in 2010

SAFMARINE Container Lines, a member of the member of the AP Moller-Maersk Group, has announced that it will withdraw from the transpacific trade at the end of June 2010, owing to weak demand.

In a letter to customers, it was cited as saying that the move is due to expectations that the poor market conditions on this trade lane are expected to continue and that owing to its small size, profitable transpacific trade is difficult.

It said that Safmarine has an allocation of about 500 FEU, equivalent to less than one per cent of the market, and was experiencing difficulty in meeting the allotment requirements amid the current economic downturn.

The company said it will honour all its contracts, and will help customers seeking replacement carriers, the report added.

Source: http://www.schednet.com