In a bid to cut costs in a market affected by low freight rates and weak global demand, Maersk Line has taken the decision to stop calling to and from 10 Chinese ports, according to Reuters.
The ports to be dropped from its services include Yingkou, Jinzhou, Rizhao and Yueyang.
Maersk Line said in a statement that the ports it will focus on are the ones which offers its customers new opportunities and prospects.
Maersk Line said: “The closure of service in these Chinese ports should not be interpreted as a change of strategy.”
Maersk Group is expected to post a Q2, 2016 loss of US$67 million when it releases its results on Friday August 12, 2016.
Feeder vessels currently serve the 10 Chinese ports, where goods are moved to larger ports and shifted to the US and Europe via mega-ships of up to 20,000 TEU.
PTI previously reported that Maersk Line could be set to suffer from long-term flat rates as rate development in the industry remains negative.
The carrier also recently dispelled all speculation that it was looking to buyout Hyundai Merchant Marine (HMM) but has recently signed a Memorandum of Understanding with HMM to boost its 2M service.
