The biggest container line will cease servicing at 10 feeder ports in China in efforts to reduce costs.
Editor’s Remarks: Investors will note that freight lines were among the earliest predictors of the slowdown in Chinese growth. A.P. Moller Maersk is being force to reduce costs due to this year’s low freight prices and has chosen to focus on profitable ports. Maersk is expected to post a loss this Friday due to downturn in container shipping and its competitors have also cut their profit outlooks recently. The container industry will likely continue to suffer with China’s economy expected to grow at slower and slower rates. The industry will need a boost somewhere and no amount of firing chief executives, like Nils Andersen earlier this year, will help solve its problems.
What to watch: A.P. Moller-Maersk, Hapag-Lloyd,