19 Maersk Ships Removed from Asia-Europe Route as Demand Dwindles

The world’s largest container line, A.P. Moller-Maersk A/S, has confirmed that it is removing 19 ships from its Asia-Europe trade lanes. This is an effort to boost rates as demand falls. Right now, there is no need for the number of ships sailing.

Bloomberg reports that Maersk will permanently scrap the AE5 service, which employs eight vessels. They will also temporarily stop the AE9 sailing, which has 11 ships, until early December. This decrease in activity brings the company’s total capacity reduction on the route to 21 percent this year, following a 9 percent cut in the beginning of the year.

Maersk is prepared to remove more ships from the route and cut sailing speeds, as volumes are expected to drop in the remainder of the year. A representative from Maersk said that the shipping giant will have to adjust to decreasing demand, while keeping their position in the market.

The third quarter is usually the peak season for container shipping since international retailers are receiving goods for the holiday season. However, compared to last year, volumes have significantly fallen.

Vessels on Maersk Line’s AE5 service each have a capacity of 6,500 standard 20-foot containers of TEUs, while ships on the AE9 route can carry 8,000 TEUs, states Bloomberg.