The traditional capacity reduction in shipping lines over the slow season is continuing as usual, but ships put out to pasture may not be brought back online in the spring as lines predict a continuing decline in traffic.

Capacity on the trans-Pacific route will drop by about 15 per cent this slack season, according to the Journal of Commerce Online.

Traditionally, that capacity would be brought back as trade heats up in the Northern Hemisphere spring, but the vice president of business development at Orient Overseas Container Line (OOCL) Rick Wen says a thaw in 2009 is unlikely.

Container exports from Asia to the US have fallen around 7 per cent so far in 2008, attributed to the imploding US economy.

Mr Wen told a collection of US West Coast freight forwarders and customs brokers on the weekend that all-water services to the US East Coast would suffer most from rising costs and lowering traffic.

Fuel costs on all-water services to the East Coast are about US$1,363 per 40-foot container, according to the Journal, while that cost is only US$861 to the West Coast.

Mr Wen said OOCL is committed to west coast services for this reason.

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