MOL quitting transpacific discussion agreements

MOL quitting transpacific discussion agreements MOL said it will resign from the Transpacific Stabilization Agreement and the Canada Transpacific Stabilization Agreement, effective Nov. 27.
   “With the European Union’s abolition of liner antitrust immunity, it has become extremely difficult to align the business processes of our entire organization when its regional divisions must operate to differing standards. Having done a thorough analysis of marketplace dynamics and the roles of TSA/CTSA relative to our unique ability to differentiate, we concluded MOL and its customers would be better served by conducting business independently from transpacific liner agreements,” said Masakazu Yakushiji, executive vice president in charge of MOL’s Liner Division.
   MOL has been a member of TSA and CTSA since their inceptions in 1989, but resigned from the westbound discussion agreements in June 2005.
   Ed Huebbe, a spokesman for MOL, said the change would give the company more flexibility in pricing and in other aspects of its business. He stressed the company was not seeking to slash rates.
   MOL will also remain a member of discussion agreements covering other trades such as the Intra Asia Discussion Agreement.
   Huebbe also said MOL intends to remain in the New World Alliance with APL and Hyundai.
   In a forecast released earlier this month, TSA said first half Asia-to-U.S. cargo volumes were off about 6.9 percent compared to the first half of 2007, but that its members — who carry about 85 percent of the Asia to U.S. transpacific trade — did a little better than the overall trade, seeing only a 1.8 percent decline in liftings during the first half of 2008. In July and August, when TSA carriers reported an overall 7 percent drop in cargo volumes, vessel utilization remained about 90 percent across all trade segments.
   In addition to MOL, TSA members are APL, China Shipping Container Lines, CMA-CGM, COSCO Container Lines, Evergreen Line, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, 'K' Line, Mediterranean Shipping Co, N.Y.K. Line, OOCL, Yangming and Zim Integrated Shipping Services.