Maersk Line has revealed that it has opted to apply for membership in the Trans-Pacific Stabilisation Agreement (TSA) five years after leaving, after witnessing large industry losses in trans-Pacific trade of over US$3bn.
If the Denmark-based group is accepted, there will be a total of 15 members in the research and discussion forum, made up of major ocean shipping lines carrying cargo between Asia and the US.
'Five years ago, the market conditions were vastly different than they are today,' said Lars Mikael Jensen, vice-president of Pacific Trade, Network and Product at Maersk Line. 'Maersk Line is convinced that restoring profitability long-term is needed in the marketplace and has demonstrated market leadership in this regard.
'It is imperative that service levels involving vessel capacity andstring frequency across the Pacific do not suffer as a result ofcontinued rate deterioration,' he added. 'The purpose of MaerskLine's participation in the TSA is to develop a platform that allowscustomers and carriers to find stability for years to come, avoidingthe gross fluctuations of 2009. This business must be managed forlong-term health and a return to profitable and sustainableoperations.'
The group added in a statement that many factors had influenced shipping rates, and that Maersk Line had taken 'drastic steps' through the year to serve customers with 'reliable, stable and dependable' services in the face of the global economic downturn.
'The market remains extremely fragile,' the group said. 'Continued rate declines could result in far-reaching and possibly permanent implications for global trade, including fewer services.'
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