SINGAPORE (Dow Jones)–The G6 alliance of container shipping firms, which includes Singapore-listed Neptune Orient Lines Ltd.’s (N03.SG) APL container line, Wednesday said that it wouldn’t implement a seventh service, or loop, on the Asia to North Europe trade lane due to unfavorable market conditions.
The alliance of shippers was expecting to implement the seventh loop in March, but shelved the plan due to unsuitable market conditions at that time. The loop had been under consideration since the alliance formed late last year.
Since March, the alliance “has not seen any improvements in the current market environment to justify the implementation of an additional service in the Asia-Europe trade,” a statement from APL, on behalf of the alliance, said.
The group of liners will continue to sail six loops on the Asia to North Europe route, plus the Asia-Mediterranean Express Service and the Asia-Black Sea Express Service.
The G6 alliance also includes Hapag-Lloyd, which is partly owned by Germany’s TUI AG (TUI1.XE), Hyundai Merchant Marine Co. Ltd. (011200.SE), Mitsui O.S.K. Lines Ltd. (9104.TO), Nippon Yusen Kaisha(9101.TO) and Orient Overseas Container Line, owned by Orient Overseas (International) Ltd. (0316.HK).
-By Matthew Allen, Dow Jones Newswires