Maersk Line Cuts Capacity On Asia–Europe Trade
By Pritha Dey
Over-supply of container vessels operating on the Asia–Europe trade lane has pushed Maersk Line’s container freight rates to unsustainably low levels. In order to rationalize its service, Maersk Line is removing nine percent of its vessel capacity currently operating on the Asia-Europe trade.
“With this adjustment we are able to reduce our Asia–Europe capacity and improve vessel utilization without giving up any market share we have gained over the past two years. We will defend our market share position at any cost, while focusing on growing with the market and restoring profitability,” said Maersk Line CEO, Søren Skou.
The nine percent capacity reduction will be facilitated by a vessel sharing agreement with the French container shipping line, CMA-CGM. With this agreement, Maersk Line will be able to remove nine percent of its vessel capacity while still maintaining full and competitive coverage for its customers.
In addition, the cooperation helps Maersk Line cut the cost of serving West Mediterranean markets, enabling Maersk Line to deploy its own vessels to areas where they are most needed as well as pursue further slow-steaming.
“The Asia–Europe trade remains the world’s busiest trade lane. However, the supply of vessels currently operating on this trade simply outweighs the demand.” said Vincent Clerc, Chief Product and Yield Officer, Maersk Line.
