Swire to lay off 200 workers

SWIRE Shipping has ordered a major reorganisation and big layoff in response to continuing weakness in European and North American economies.

Swire will withdraw its two round-the-world services and shed 200 of it 550 liner staff worldwide. The company also said it will refocus on its core Asia-Pacific trading areas.

The changes grew out of a comprehensive review in conjunction with the integration of NZ-based Tasman Orient Line, of which Swire recently took full control. CEO Ulrich Stelling said the collapse in cargo volumes and significant reduction in freight rates, coupled with the increasing oil price, meant the eastbound and westbound RTW trades were no longer financially sustainable.

The previously announced Europe Pacific Service, originally planned to replace the WRTW (Bank Line), will also be suspended, while the Australia/PNG/North Asia service will be combined with TOL’s NZ-North Asia service.

Vessels on the ERTW will be transferred to Swire’s ANZ-WCNA service.

(Source: Fairplay Shipping News)