Evergreen withdrawing from South American loop

Evergreen withdrawing from South American loop Evergreen said it is withdrawing from Hamburg Sud’s Tango service that links ports on the East Coasts of North and South America.
   Evergreen’s decision follows similar action by Maersk Line in August to leave the same Hamburg Sud loop.
   Evergreen said it was suspending its participation because of the “worldwide economic downturn and the need to focus resources in other trades.”
   Earlier this week Evergreen reported third quarter net income of NT$291 million ($8.9 million) compared to NT$5.2 billion ($158 million) in the same 2007 period.
   Revenue was NT$5.6 billion ($170 million) in the quarter compared to NT$6.7 billion ($204 million) in the same 2007 period.
   Evergreen Line is suspending service by terminating its space charter agreement in compliance with a 90-day pre-notice. The final sailings for Evergreen Line customers will be in late January.
   “We look forward to continued customer support and as is customary Evergreen Line policy, will continue to examine global economic conditions in the future and determine the appropriate time to reconsider renewing service to this important trade lane,” Evergreen Line said in an announcement.
   Evergreen will continue service to Venezuela via the Colon Container Terminal in Panama and to South America’s West Coast trade.
   Other participants in the service are CSAV and its Libra-Montemar affiliate and Hamburg Sud’s Alianca affiliate.
   According to American Shipper’s ComPair Data affiliate, the service employs seven vessels with average capacity of about 3,580 TEUs in this rotation: New York, Philadelphia, Norfolk, Charleston, Jacksonville, Port Everglades, Puerto Cabello, Suape, Santos, Buenos Aires, Rio Grande, Navegantes (near Itajai), Santos, Suape and New York.