New World Alliance cuts back transpacific capacity 10pc

THE New World Alliance (TNWA) carriers - APL, Hyundai Merchant Marine and MOL - have announced an immediate withdrawal of more capacity earlier than in previous years on the transpacific because of "unprecedented operating costs", particularly fuel.

The withdrawal may run longer than in past years, said the group, saying that in addition to an immediate 10 per cent winter reduction, it will withdraw a further five to 10 per cent capacity from December, according to the TNWA.

The New World Alliance expects it will have the capacity to meet demand in the winter season and service will be provided at existing port locations.

"The carriers did not rule out future additional network adjustments in order to minimise the impact of dramatically higher costs on their respective businesses," said the group's press statement.