Maersk Line quits 10 Chinese ports, to focus on profitable ones
- Wall Street ends down as Trump focuses on trade
- Aetna's (AET) Humana (HUM) Takeover Blocked by Judge as Anticompetative
- Trump signs order withdrawing U.S. from Trans-Pacific trade deal
- Qualcomm (QCOM) Thrashed as Apple (AAPL) Lawsuit Threatens Licensing Business Model
- McDonald's (MCD) Tops Q4 EPS by 3c
Triple-E class container ship "Madison Maersk" of Maersk Line loaded with containers is berthed at Nansha port in Guangzhou, Guangdong province June 26, 2014. REUTERS/Alex Lee
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
By Ole Mikkelsen
COPENHAGEN (Reuters) - Maersk Line, the world's biggest container shipper, has decided to stop services to and from 10 ports in China as part of a drive to reduce costs.
Maersk Line, a unit of Danish conglomerate A. P. Moller-Maersk
Maersk Line said it would stop serving ports in Chizhou, Luzhou, Yingkou, Jinzhou, Rizhao, Yueyang, Lijiao, Taiping, Jiaoxin and Nansha old port.
The ports are currently served by feeder vessels that move goods to larger ports where mega-vessels with capacity of up to 20,000 20-foot containers take over and transport the goods to ports mostly in Europe and the United States.
Maersk Line said in a statement it would focus on ports that offered the best growth prospects and opportunities for its customers.
"The closure of service in these Chinese ports should not be interpreted as a change of strategy," Maersk Line wrote in an email to Reuters, declining to give further comments.
The A.P. Moller-Maersk group will publish second-quarter results on Friday and Maersk Line is expected to post a loss of $67 million, according to a Reuters poll.
Last month, German-based competitor Hapag-Lloyd
Driven by the container shipping downturn and a slump in oil prices, the A.P. Moller-Maersk group's chief executive Nils Smedegaard Andersen was fired in June and Soren Skou, head of Maersk Line, was named group chief executive.
Maersk Line is currently represented in 41 locations in China, which has been recognized as the world's factory since the late 1970s. In recent years, Chinese growth has slowed.
(Additional reporting by Teis Jensen; Editing by Adrian Croft)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- U.S. SEC says shipowner OSG, former CFO, charged over tax evasion
- Italy's Generali buys three percent of Italian bank Intesa in defensive move
- Beyond Pokemon Go: augmented reality catches Jon Hamm at Sundance
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!