Orient Overseas Container Line said that, following a 30 percent drop in freight volume during the first two months of this year, the company has made moves to reduce capacity to cope with the downturn in the world shipping market.
The Chairman of the group, CC Tung, said that following a drop in trade demand and under the pressure of excess capacity, OOCL was in a deficit situation and could reduce freight rates.
OOCL has already reduced its capacity by not extending the service of older vessels, cutting routes, arranging fleet maintenance and other strategies, which will cut capacity by 25 to 30 percent in the first quarter. Mr Tung said the group would restrict capacity growth to two to three percent and that the group had no plans to purchase new vessels during this year.
With Tracey Jia