Hamburg Sud and Senator Lines are ending from August their co-operation on the Southern Route, a service they have maintained for many years which connects Europe with the Levant.

But Hamburg Sud will continue the existing service with four vessels and Senator Lines is expected to present its new service concept soon.

The last jointly-operated vessel will be the Cap Azul (voyage number 766), which is scheduled to depart from Antwerp on August 11.

In another development, Senator Lines has concluded its internal negotiations that pave the way for the line to begin implementing various plans outlined in the company's realignment scheme called "Concept 2007."

"This new positioning involves drastic, painful measures," said Senator Lines CEO Hans-Hermann Mohr, "but, with this rapid, clear correction, we are certain to create conditions to return to the success of the past years."

The move comes after Senator Line's board in September announced plans to drop loss-making services and offer an optimised timetable of 12 profitable liner services following a drop in freight rates in spite of rising demand, especially on Far East trade routes.

Senator will cut carrying capacity by up to 240,000 TEU a year. Its main reduction - 135,000 TEU a year - will come from the pendulum service PDS, operated in collaboration with the CKYH Alliance that ends by January 1.