K Line plans to reduce container ship fleet by 10% within a year

Japan's Kawasaki Kisen Kaisha ("K" Line) plans to cut the size of its container ship fleet by about 10 per cent within a year amid the falling international shipping market. "K" Line plans to reduce the number of container ships it operates from around 95 to fewer than 90 by the end of fiscal 2009, which starts on April 1, said a company official, asking not to be named. "K" Line is Japan's third-largest shipping company by group sales after Nippon Yusen Kabushiki Kaisha (NYK Line) and Mitsui OSK Lines (MOL). NYK Line and MOL have already made significant cuts in their container transport capacities on major routes, including the Asia-North America one, from the peak levels seen before the global financial turmoil erupted and began to seriously bite into the world economy last September. But it will be the first time that "K" Line has cut the size of its mainstay container ship fleet, according to the Journal of Commerce . The "K" Line official said that the company also plans to reduce the number of car carriers it operates from about 85 at present to about 80 by the end of fiscal 2009 – March 31, 2010. As of April 2008, "K" Line planned to increase the overall size of its ship fleet, including bulk carriers and oil tankers as well as container ships and car carriers, by between 12.2 and 14.2 per cent to between 560 and 570 vessels by the end of fiscal 2009. But as a result of downward revisions to the fleet expansion plan, the company's fleet at the end of fiscal 2009 will total between 500 and 505 vessels, up between 0.2 and 1.2 per cent from the level seen at the end of fiscal 2007, the company said. The "K" Line official also said that the downward revisions to the previous fleet expansion plan will be reflected, especially in the company's operations on its main Asia-North America and Asia-Europe routes. Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here .