Lines consider laying up ships as crisis deepens

If anyone needs evidence to corroborate the extent of the global financial crisis, they need look no further than the shipping industry – with trade outlook providing a fairly accurate barometer. In a recent interview with Bloomberg, Japanese carrier MOL said it was considering scrapping seven of its Capesize dry bulk ships from its fleet of 100 vessels. The line could lower its earnings forecast for a second time this year if rates stay near record lows, according to the report. In a separate development, Maersk Line’s chief executive Eivind Kolding told a Copenhagen newspaper recently that the line was considering withdrawing some of its container ships in the first half of 2009 to counter the deepest market downturn in three decades. It has forecast zero growth in volumes for next year. Several line executives told FTW that there was extreme pressure on rates with a so far non-existent peak season this year.