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Wednesday 12th November 2008, 20:01 Central Time

CKYH Alliance cuts shipping capacity

Another collection of Asian shipping lines has announced capacity cuts as the slack season and falling demand set in

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The Alliance consists of China Ocean Shipping Co, K Line, Yang Ming Line and Hanjin Shipping, who follow the New World Alliance (APL Ltd, MOL and Hyundai Merchant Marine) and Maersk Line in capacity reductions.

CKYH said it would suspend its Mediterranean-Asia-America pendulum service in early 2009, along with cuts to services on Asia-Europe and Mediterranean routes, according to the Journal of Commerce Online.

In October the Alliance suspended its all-water East Coast service, which trimmed off about 18 per cent of its Asia to US East Coast capacity.

The driving force behind the cuts is to some extent the annual slack season in shipping, but analysts worldwide have noted a slowing demand in North America and Europe for Asia exports, from consumer goods to fruit and vegetables.

Analyst group PIERS Global Intelligence predicts US imports will decline 7.6 per cent in 2008 from 2007, with a further 2.9 per cent drop in 2009.

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