Issue link: http://digital.nexsitepublishing.com/i/42918
6 News, Trends, Analysis Maersk acknowledges Asia-Europe vessel glut; introduces daily service Denmark's shipping giant, A.P. Moeller- Maersk A/S, admitted a glut of new big vessels entering the Asia-Europe shipping trade, the second largest in the world, is having an impact on its ability to raise Peak Season rates, while the liner group also introduces a new daily service into that market. In an interview in London, Maersk Chief Executive Officer Eivind Kolding said some European shipping regions are more impacted than others with regard to capacity. "Most of the new big ships actually go to northern Europe, so this is where you have the bigger problem," he said. Maersk has reportedly had more success with Peak Season rate increases for some of its Mediterranean services. Kolding said fleet utilization is at over 90 percent in the Asia-Europe trade, which matches the global average, offering small incentive to cut capacity with new vessels arriving later in the year. "It's difficult to make a decision to pull a lot of capacity, especially if hypothetically one line should decide to do it, then actually the rest of the market will benefit," Kolding said. Europe's Peak Season is reportedly busiest in the third quarter, although the continent is in the throes of economic instability, with concerns over Greece's financial issues causing a domino effect Report: U.S. transportation downshift points to slowing economy Oil and other commodity price increases in the first half of 2011 have underpinned a slowdown in U.S. transportation growth as consumers have reacted by tightening their belts, according to a rating agency's report. Since transportation volumes are inextricably linked with economic activity, data tracked by Fitch Ratings indicates the economy continues to grow, but at a slower pace. Cuts in government spending and a subsequent decrease in government- related employment are also likely contributing factors, the Fitch report said. Infrastructure ratings are not currently impacted as a result of the slowing economy, according to Fitch. The evaluation of debt issued to finance transportation related public infrastructure is a 'rating case' that takes into account some downward movement of demand for the facility, Fitch said. Transportation facilities with annual debt service obligations that increase over time and those with less pricing power will have more rating pressure if volume grows more slowly than debt service, according to Fitch. However, another downturn like the one that started in 2008 would pressure many ratings, the rating agency said. September 2011 www.cargobusinessnews.com NOL volume gained in August; revenue per-box dropped Singapore's container-shipping giant, Neptune Orient Lines, posted an 8 percent gain in cargo volume at 235,200 FEUs carried in August over the same four weeks in 2010. NOL reported its average revenue per-FEU dropped in August from $3,181 for the same period last year, to $2,559 per-FEU from $3,181 last year. For the year to date, NOL said in a statement that it has carried 8 percent more containerized cargo, while average revenue per- FEU has slipped by 7 percent year-to-date compared to the same period in 2010. L.A.-Long Beach terminal operators settle on emissions- cutting agreement Marine terminals at the ports of Los Angeles and Long Beach reached a settlement that was approved in Los Angeles Superior Court on Monday to cut emissions from their facilities. Yesterday's agreement comes on the heels of a suit that had been filed by California Attorney General Kamala D. Harris in June that alleged the terminal operators at T