MOL quashes rumours about container plans

There has been a tale doing the rounds, both internationally and in SA, that the Japanese sea carrier, Mitsui OSK Line (MOL), was considering “spinning off” its container division. But MOL has no plans to quit the container business, according to Andrew Weiss, Cape Town-based marketing team leader for the line. He suggested that we should read a release from head office which clearly states that the press reports were a result of “a misinterpretation of remarks” made by MOL financial director Yonetani in an interview with press agency, Reuters. He did admit that the container business had been hardest hit “due to unprofitable rates and sagging volumes”, and that he expected the overcapacity in the container market to continue for several years. But Yonetani explained that “only diversified shipping lines which provide a wide range of services including bulkers and containers will be able to survive”. And, although MOL spinning off its container shipping division was one option, the benefit of doing so at this time would be small due to the industry's huge overcapacity. “Obviously,” he added, “with the current downturn in the global economy and over supply of capacity in the shipping market, and being a responsible company, MOL continues to review every alternative to improve its profitability.” “However, as I actually said, we consider that the option of a ‘spin-off’ is not a choice under the current circumstances.”