CHO YANG LEAVES U.S./BRAZIL TRADE

CHO YANG LEAVES U.S./BRAZIL TRADE

   Cho Yang Shipping is pulling out of the U.S. East
Coast/East Coast of South America trade.
    The last sailing on the South American route for the Korean shipping
line leaves the U.S. this week.
    Cho Yang cited increasingly heavy container repositioning costs as one
reason for the termination of the service. Lower southbound volumes and an increase in
northbound traffic have widened the trade imbalance, a Cho Yang executive said.
    Hanjin Shipping, DSR-Senator, Zim Israel Navigation and Pan-American
Independent Line, the vessel-sharing partners of Cho Yang on this route, will continue the
joint six-ship service.
    From the U.S., Cho Yang will now provide only east/west services, as
part of the United Alliance with Hanjin, DSR-Senator and UASC.
    Cho Yang’s move is the latest in a series of withdrawals by carriers in
the very competitive U.S./East Coast of South America trade. Di Gregorio, the Brazilian
line, pulled out of the trade earlier this year, following the ending of the services of
Transroll and Navieras.