Market conditions force vessels off shipping lanes.
Maersk Line announced the lay up of eight 6,500 TEU (twenty- foot equivalent unit) vessels.
Maersk Line announced today the lay up of eight 6,500 TEU (twenty- foot equivalent unit) vessels.
The decision, the company said, follows the recently announced changes in their Asia ? Europe, Asia ? Central America, and Transpacific service networks. This resulted in surplus vessel tonnage, which will not be redeployed in their service network.
?In view of the market conditions, we have reached the point where laying up the eight vessels makes better economical sense than redeploying them. Freight rates remain under severe pressure, and in several corridors the rates do not fully cover our variable costs. Rate improvements are imperative for the industry to create a sustainable environment,? says Michel Deleuran, Head of Network and Product in Maersk Line.
The company said it will continue to adjust capacity in light of market developments by optimising schedules, consolidating services, vessel sharing agreements (VSA), enhancing port productivity, economical sailing (reducing speed), and ? unless current market conditions improve ? additional laying up of vessels.
?We make these changes to reduce capacity and save costs, while we at the same time seek to maintain or expand our service level and coverage. For example, our recently announced Asia ? Europe and Transpacific service changes includes more direct services,? Michel Deleuran says.
?We belong to a financially strong group and we will continue offering our customers reliable services in line with their requirements, also in these challenging times?.
Lay up of the eight ships will be from December 2008 to May/June 2009, predominantly in Asia.