NEW WORLD ALLIANCE CONSIDERS PACIFIC CAPACITY CUTS

NEW WORLD ALLIANCE CONSIDERS PACIFIC CAPACITY CUTS    The New World Alliance of MOL, APL and Hyundai Merchant Marine, the largest alliance grouping in the transpacific trade, is studying plans to reduce vessel capacity this winter.
   Although the New World Alliance carriers and other transpacific lines have experienced record eastbound traffic volumes and recent shortages of capacity, the peak season is expected to end in the next few weeks.
   The New World Alliance carriers may end their PSV transpacific weekly container service, a source within the alliance told American Shipper. The New World Alliance introduced the PSV service in June, with a rotation of Tokyo, Nagoya, Kobe, Kaohsiung, Hong Kong, Yantian, Hong Kong, Los Angeles, Vancouver, Seattle and Tokyo. The service employs five ships of about 4,400-TEU capacity.
   In previous years, the alliance has reviewed its capacity requirements for the slack season and adjusted its service provision. In November 2001, the New World Alliance withdrew its former Pacific Northwest Express loop.
   The New World Alliance currently operates nine transpacific container services with a combined one-way capacity of about 40,000 TEUs a week, according to a recent report of the global liner shipping database ComPair Data. The alliance’s capacity represents 18 percent of the total eastbound vessel capacity.