If the report doing the rounds in shipping circles is to be believed, members of The New World Alliance - APL, Hyundai Merchant Marine and MOL - propose to cut back capacity, particularly on the trans-Pacific route, even as they announce major capacity upgradation with the introduction of eight mega ships on the Asia-Europe sector. The capacity withdrawal on the trans-Pacific, the report suggests, will not only be more but will also take place earlier than that in the previous years because of "unprecedented rise in operating costs, particularly fuel costs." In addition to an immediate 10 per cent winter reduction, the TNWA members are likely to withdraw a further 5-10 per cent capacity from December. Meanwhile, in response to rising demand on the Asia- Europe sector, the TNWA members from January will place eight ships of the capacity ranging from 8,100 to 8,500 TEUs on the South China Express service, which will now have a few more new calls. |
