The intra-Asia trade has been hit hardest by the regional currency turmoil, causing carriers to withdraw services or reduce frequency of calls, a senior shipping executive says.
Asian Shipowners' Forum (ASF) stabilisation of trade committee chairman Masaharu Ikuta told the committee's meeting in Hong Kong the impact had been felt especially in Japan's exports, which made up more than 20 per cent of intra-Asia trade volume.
'It has been reported that due to a substantial volume drop in certain trade lanes within Asia, several carriers have already decided to either withdraw or reduce the number of loops or to downsize ships' capacity in order to protect their financial positions,' he said.
The ASF comprises chief executives of leading shipping lines who share common understanding on trade circumstances and look at ways to stabilise trade.
The deterioration in rate levels, coupled with the currency turmoil and economic recession in some Asian countries, had had a negative impact on the export-import balance in key trade lanes, Mr Ikuta said.
Mr Ikuta, who also is Mitsui OSK Lines' president, said these factors had put pressure on the carriers' businesses, which drove the carriers and carrier groups inevitably to withdraw vessels or reduce sailings.
In the eastbound trans-Pacific trade, it was reported there was about 14 per cent growth in cargo volume last year against 1996.