K Line exits Portland volumes plunge, but still offers Hanjin slots

FACING diminishing volumes, Tokyo-based K Line has ended its container shipping service to Oregon's Port of Portland from April 23, reports the Portland Business Journal.

The move comes just seven months after port officials heralded the return of K Line's containerships to Portland after four years without direct access to Japan.

K Line is disbanding a pendulum service that will also impact ports in Japan, Taiwan, and across Europe. Obviously it has to do with costs, said K Line vice president Peter Bennett. All the shipping lines are suffering through the current circumstances and we have to try and take measures to reduce whatever costs we can. We can reduce costs by changing our schedule, which unfortunately means eliminating Portland.

Mr Bennett said t K Line will continue to offer a shipping service through Hanjin in which it has slots. The company will also continue to call Portland with auto carriers.

It is not good news, but it does not come as a complete surprise, said Josh Thomas, the port's spokesman for marine and industrial development. Since the first call last summer, overall trade volumes have steadily plummeted along with most key economic indicators worldwide. Carriers are facing challenging global market forces, and an estimated 10 per cent of the world containership fleet is now idled.

The port handled 15,961 containers in January, a nearly 28 per cent decline from the same month a year earlier.

Source: Schednet