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Hanjin to Drop Trans-Atlantic Service
Hanjin Shipping is pulling out of several money-losing trades to cut its ongoing losses. It told its customers last week it will drop its trans-Atlantic service because of what it called “dismal market conditions which do not support operational costs." Although it is rare for a major carrier to pull out of a large, established trade lane such as the trans-Atlantic, Hanjin will stop serving customers in the trade lane after May. “We are not in that trade lane any longer,” said Mike Radak, senior vice president of sales and operations at Hanjin Shipping USA. Hanjin provides trans-Atlantic service on what it calls the New Trans-Atlantic service, the lone service on that trade operated by the CKYH alliance, which also includes Cosco, “K” Line and Yang Ming. Radak said that “hopefully” Hanjin’s partners in the CKYH Alliance will service its customers’ cargo. He said Hanjin does not plan to offer service through slot charter agreements with its partners or other carriers. Hanjin operates one of the four 4,500-TEU vessels that the alliance deploys on the trade. The money-losing South Korean carrier said the final voyage on which it will be part of the NTA service will be that of the Yang Ming Vancouver leaving New York-New Jersey on May 13.
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