NYK withdraws from north-south ‘Tango’ service

No reasons was given for NYK’s decision, but industry officials say it is tough for carriers to make money in the north-south trade lanes today.    NYK Line has formally given notice to its partners that it is withdrawing from Hamburg Süd’s north-south Tango service.
   Tom Pirie, an official with Hamburg Süd North America, confirmed NYK’s withdrawal from the vessel-sharing arrangement, but referred an explanation for the move to NYK.
   William Ferguson, an official at NYK’s North American headquarters in Secaucus, N.J., said the company had no comment about the Tango service.
   There are seven vessels operating on the service between the east coasts of North and South America. Hamburg Süd operates four vessels, Hapag-Lloyd operates two and NYK participates with one vessel. NYK has sailings scheduled through the end of October, according to ocean carrier schedule and capacity database Bluewater Reporting.
   NYK joined the Tango last October, and the Japanese carrier’s departure likely had to do with poor rate environment on north-south trade lanes. 
   Two maritime sources said rates are in the tank and carriers can’t make money because there is too much capacity. Northbound volumes and rates are stronger, with perishable items such as fruits and vegetables exported from South America, but southbound rates are not compensatory. The situation has worsened in the past year as lower demand and a strong dollar have taken a bite out of exports to Brazil.