|
Major
liner operators, under an informal
group known as “Box Club”, and
the Far Eastern Freight Conference
are scheduled to meet in Shanghai
this week to take look at
deteriorating market condition the
global liner industry now made
worse by the fall-out from the
terrorists attack on the US.
The
meeting, which was earlier to have
included the US-based Transpacific
Stablisation Agreement, is
expected to take a look at
proposals by the conferences to
restrict capacity in an attempt to
arrest the rot in the freight
market.
Both
Far Eastern Freight Conference
(covering the trade lanes between
Asia and Europe) and the
Transpacific Stablisation
Agreement (covering the trade
lanes between the US and Asia)
announced that measures are being
taken to introduce voluntary
capacity withdrawal schemes.
The
meeting which was planned before
the terrorists attack on US, is
also expected to discuss the fears
of deepening of recession in the
US and globally as a result of the
attack.
Industry
sources said liner shipping demand
is expected to take a tumble
faster than expected.
The
FEFC,which met in Hong King last
month, had invited its members to
consider a voluntary vessel
withdrawal scheme in the
Europe/Asia trade.
The
Conference has submitted a draft
filing with European regulators
and is expected to file a formal
notice after the meeting in
Shanghai.
The
European Commission is expected to
vet the proposal for possible
violation of anti-competition
rules.
Similarly,
the call by TSA to its members to
limit capacity is being watched by
the Federal Maritime Commission
for breach of anti-trust rules and
is expected to be assured by the
shipping lines that the move will
not result in capacity shortage.
It
is understood that TSA’s ship
lay-up programme is at an advanced
stage of preparation although
participating members are said to
be breaking ranks.
Some
operators are already acting ahead
of the outcome of the Shanghai
meeting.
The
New World Alliance has announced
that its new weekly service
between Europe and Asia will
become fortnightly from next
month.
One
of its member lines, APL has
off-hired three of the chartered
ships reducing the number of ships
in the newly inaugurated New
Europe-China Express service to
five ships.
Other
member lines include Mitsui OSK
and Hyundai Merchant Marine.
It
is understood that CMA-CGM has
also agreed to cut out five
sailings soon that could see it
laying up some of its new 6,600
TEUs ships for a few weeks.
|
