Wan Hai Lines has decided to move completely out from Asia-Europe trade because of Ominous market conditions.
Reasons:
- Spot rates on Asia–Europe trade routes fell to historic lows.
- Wan Hai had too many vessels with a 10,000 teu operating in the Europe market.
- The European market became non-lucrative hence withdrew completely.
- Started Chartering services to Europe.
- The company plans to concentrate on Asia, The US and Latin American markets.
Wan Hai stated its Q2 profit expectations will be affected by the falling shipping rate in the intra-Asia trades. The container carrier is primarily an intra-Asia player. It tends to focus more on this trade when prices plummet. As a result, one of the most resilient names in the liner trades, remain in the black while most of its peers get hit on the main east-west.
Source: Atlas International Network
