Taiwanese carrier Wan Hai Lines has decided to completely quit the Asia-Europe tradelanes due to the unfavourable market conditions.
The company reckons that there are too many ships above 10,000 teu operating in the Europe market and the outlook of the market remains grim.
Previously Wan Hai was chartering capacity for its Europe service and it has decided to withdraw from the market completely and concentrate on Asia, US and Latin America markets.
Wan Hai said its second quarter profit will be affected by the falling shipping rate in the intra-Asia trades.
Cautious by nature, Wan Hai is primarily an intra-Asia player. It tends to focus more on this trade when rates plummet and as a result is one of the most resilient names in the liner trades, remaining in the black while most of its peers get hit on the main east-west tradelanes.