CKYH cuts transpacific capacity for winter

CKYH cuts transpacific capacity for winter    Member lines of the CKYH Alliance (COSCO Container Lines, 'K' Line, Yang Ming, and Hanjin Shipping) said Wednesday they intend to reduce transpacific capacity at the end of November to account for lower demand in the slack season.
   The lines said they will reduce capacity from Asia to the U.S. West Coast by 10 percent and to the U.S. East Coast by 20 percent. To the U.S. West Coast, the 10 percent reduction will be achieved by reducing the vessel size on two of the alliance's services ' COSCO's SEA loop and Hanjin's PSX loop.
   According to a 'K' Line representative contacted by American Shipper affiliate ComPair Data, the vessel size on the SEA service will be reduced from 4,900 TEUs to 3,600 TEUs, while the PSX will be operated with 4,900-TEU ships instead of the current 7,000-TEU ships. The alliance will also intentionally skip sailings on services to the U.S. West Coast.
   To the U.S. East Coast, capacity will be cut strictly through intentionally skipped sailings, with one voyage per week to be cut from the alliance’s collective five all-water services.
   The lines did not indicate when the capacity cuts would end.
   'With even more rationalized and effective fleet operation, we believe we will be able to provide stable and satisfying service to our valued customers, especially under the current economic climate,' the alliance said in a statement.