HMM departing U.S./East Coast South America trade
Carriers end U.S./Brazil loop to join with CSAV
NYK, Hyundai start Asia/Africa/South America service
South Korean container line Hyundai Merchant Marine has confirmed it will exit the U.S. East Coast/East Coast South America trade at the start of May.
HMM only entered the trade in December 2006 by joining the soon to be deleted service (marketed by HMM as LA1) of 'K' Line, Hanjin and Yang Ming, who will instead tie up with an existing service of Chilean carrier CSAV.
“Despite reductions in tonnage in the trade, by Maersk and other carriers, we found the return on investment to be less than favorable,” a U.S.-based spokesman for the company told Shippers’ NewsWire. “Rising costs make it more and more difficult for the carriers to obtain a reasonable ROI.”
HMM is about to enter the Asia/East Coast South America trade by starting a new service in partnership with NYK called New Horizon Express (NHX) that also includes calls in South Africa.
“Trade between China, Korea and Japan with Brazil and Argentina is brisk,” the spokesman said. “We hope that customer partnerships forged in the LA1 service will likewise demand HMM service to Asia.”