TACA CARRIERS TO WITHDRAW SOME CAPACITY IN CHRISTMAS/NEW YEAR PERIOD

TACA CARRIERS TO WITHDRAW SOME CAPACITY IN CHRISTMAS/NEW YEAR PERIOD    The Trans-Atlantic Conference Agreement carriers will withdraw some vessel capacity during the Christmas/New Year off-peak season, to compensate for the usual fall in cargo volumes.
   TACA lines Atlantic Container Line, Hapag-Lloyd, Maersk Sealand, Mediterranean Shipping Co., Orient Overseas Container Line, NYK and P&O Nedlloyd have notified the U.S. Federal Maritime Commission of the plan.
   This will be the third year that the transatlantic carriers jointly withdraw some capacity, under a seasonal, temporary program at the end-of-year season.
   The temporary program coincides with a period when there is a dramatic slump in volume as factories close for Christmas, said David Jeffries, general manager of TACA. Despite the capacity cuts, TACA “will continue to provide adequate capacity” for cargoes, he said. Another provision of the capacity program is that it will not be coupled with rate increases, Jeffries added.
   Regulators in Washington and Brussels have allowed joint seasonal capacity programs among ocean carriers, but have expressed strong reservations about permanent capacity management programs.