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The
Far Eastern Freight Conference has
announced that 10 per cent of the
present capacity of member lines
in the Europe/Asia trades will be
withdrawn over the next six months
in an attempt to remove surplus
capacity and arrest the declining
fortunes of its members.
The
move, which has secured immunity
from the European Commission, is
not expected to affect the
capacity or disrupt the trade
which has recorded a marked
decline in recent months.
The
first move under the vessel
withdrawal programme has been
implemented by the Grand Alliance
whose members include Malaysia
International
Shipping Corporation Bhd, P&O
Nedlloyd, Hapag Lloyd, NYK Line
and Orient Overseas Container
Line.
It
is understood the Alliance, whose
member lines vessels call directly
at Port Klang, has drawn up a
schedule of ship withdrawal for
the coming six months as part of
the capacity reduction scheme
directed by the FEFC.
The
capacity withdrawal scheme comes
in the wake of a report by
international shipping
consultants, Drewry that the
container shipping industry could
be facing the biggest crisis in
its 40-year history.
The
consultants do not see any
recovery possible in the next 18
months and warn that freight rates
are expected to be devastated over
the next year.
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