NYK Line to cut expansion plans 10%

NYK Line to cut expansion plans 10%

Kudo

   Japanese liner carrier NYK Line will cut its fleet expansion plans by 10 percent, according to a Bloomberg report Tuesday.
   In an interview with the news agency, new NYK President Yasumi Kudo said the carrier will expand its fleet to 850 ships by March 2011, rather than the 940 it had planned earlier. However, he said no orders will be canceled; rather orders yet to be placed now will not be made.
   'Shipping demand has yet to rebound,' Kudo told Bloomberg. 'Operating profit will be lower this fiscal year.'

Related Stories •   New NYK president: Overexpansion “regrettable” •   Becoming a 'logistics integrator

   The line will cut 10 percent of its capacity this month through layups and scrapping, he added. NYK has idled eight vessels and will likely shelve another 20.
   In his first speech as president earlier this month, Kudo lamented the regrettable overcapacity in the containership industry brought on by ambitious fleet expansions of nearly every major carrier.