New World Alliance to cut winter transpacific capacity

The New World Alliance of APL, Hyundai Merchant Marine (HMM) and Mitsui O.S.K. Lines will combat an "unprecedented rise in operating costs" in the transpacific market by withdrawing vessel capacity from the trade earlier than in previous years.

In addition to an immediate winter reduction of around 10 percent, the alliance members will from early December also withdraw a further 5 percent to 10 percent of its joint capacity in the transpacific. The capacity withdrawal may also run longer than in past years.

The Grand Alliance -- Hapag-Lloyd, NYK and OOCL -- has merged two of its transpacificloops until late February and similar short-term actions are expected across the networks of other carriers and consortia.

"The New World Alliance anticipates that it will have plenty of capacity to meet demand for cargo transportation services in the transpacific during this winter season. Service will continue to be provided at all existing port locations," the three carriers said in a joint statement.

The lines did not rule out future additional network adjustments in order to minimize the impact of "dramatically higher costs on their respective businesses."

Source: American Shipper