Maersk suspends transatlantic string, raises rates in 2010

DENMARK's Maersk Line has announced plans to scrap its transatlantic 3 (TA3) service between North America and Northern Europe in an effort to adjust capacity to better suit market demand.

"Trading and market conditions on the transatlantic route warrant elimination of excess capacity between Europe and North America," said Soren Castbak, senior director of Atlantic services for Maersk Line.

Subject to regulatory filing, the TA3 service will be discontinued in mid-December 2009, reducing by one third the capacity offered by the New World Alliance (a consortia of APL, MOL and Hyundai Merchant Marine), CMA CGM and Maersk Line.

Maersk Line said it will continue its partnership and space exchange with the New World Alliance in the transatlantic trades. Maersk Line will also continue its slot charter with CMA CGM.

"We monitor the dynamics of the marketplace closely to ensure our product network is efficient and matches the demands of the trade. Although we believe we have seen the bottom, these capacity reductions are necessary due to the lower demand caused by the economic downturn," said Mr Castbak.

Maersk Line said it will add the port of calls made in the TA3 service to its transatlantic 1 (TA1) and transatlantic 2 (TA2) services.

Changes to the TA1 service will include the addition of an eastbound call at Antwerp, Belgium and also Le Havre, France. The new eastbound rotation includes: Miami, Jacksonville, Savannah, Charleston, Newark, Antwerp, Bremerhaven, Felixstowe, Rotterdam and Le Havre.

The new westbound port rotation will be: Antwerp, Bremerhaven, Felixstowe, Rotterdam, Le Havre, Newark, Norfolk, Charleston, Los Angeles and Oakland.

In addition to its current port schedule, the TA2 service will offer new port calls at Miami on the eastbound rotation and Newark, Savannah and Miami on the westbound.

The revised eastbound rotation will be: Miami, Houston, Mobile, Norfolk, Rotterdam, Felixstowe and Bremerhaven.

The new westbound rotation will be: Rotterdam, Felixstowe, Bremerhaven, Newark, Charleston, Savannah, Miami, Houston and Mobile.

Maersk has also announced three general rate increases in the transatlantic trades for next year that will affect cargo moving between North America and Europe/Mediterranean.

"Trading conditions for the carriers operating in these markets are still subject to unacceptable rate levels and the situation is unsustainable in the longer term," the carrier said.

The 2010 rate hikes will be US$400 per TEU and $500 per FEU on the North Europe trade that are scheduled to take place in both January and April.

For the Mediterranean trades the rate increases will be $400 per TEU and $500/FEU to take place in both April and July. The carrier also plans to raise rates on both of these trades again in October next year, although the actual amount is yet to be announced.

(Source: www.schednet.com)