Many of the world's major shipping lines have cut back service, particularly between Asia and the West. Maersk Line, the world's biggest ocean container carrier, put eight 6,500-TEU ships on hiatus for six months in response to lower volumes and rates. The Copenhagen-based operator says it will idle more vessels if conditions do not improve. According to Maersk chief executive Eivind Kolding, from 10 and 15 medium-sized carriers could be taken out of service due to surplus capacity."In view of market conditions, we have reached the point where laying up the eight vessels makes better economical sense than redeploying them," says Michel Deleuran, Maersk director of network and product. "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."

Though it hasn't pulled ships, Japan's largest shipping company, NYK Line, says it will review its current medium-term management plan in January to look at the possibility of doing so. It has already announced a plan to cut fleet expansion plan by around 25%, or 50 to 60 ships, because of declines in the global shipping market. The original plan called for increasing the fleet to 1,000 ships in fiscal 2010 from 777 ships at the end of fiscal 2007. The revised calls for a total of 950 ships. Rival Japanese firm Mitsui OSK Lines is also revising its expansion goal from 1,000 ships to 950 in fiscal '09.

Singapore-based Neptune Orient Lines reports its worldwide container volumes dropped by 12% from Oct. 18-Nov. 14, while average revenue per container increased by 9 percent. The company says the decline reflects a slowdown in global demand, particularly in the trans-Pacific and Asia-Europe routes where it has initiated capacity reductions since October.