Maersk Line line has decided to remove 9% of its vessel capacity from Asia-Europe route. This will not affect current market share since the vessel utilization rates are low. Maersk Line says that container freight rates are at an unsustainably low level but the company plans to defend market share position at any costs. This capacity cut is supposed to help restore profitability.
The removal will be facilitated by a vessel sharing agreement with CMA-CGM. Back in December markets viewed a parnership of CMA-CGM and Mediterranean Shipping Co. as a move against Maersk. NS alluded to the possibility of the large players targeting smaller rivals instead. With this cooperation, Maersk can also cut costs of serving West Mediterranean markets. A.P. Moller – Maersk Group's (OMX: MAERSK A, OMX: MAERSK B) full-year results are due on 27 February 2012. The share is up 2.5% at exactly 47 000 DKK.
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