The world's largest container shipping company Maersk Line said it would cut freight capacity on Asia-Europe trade lanes due to softening demand, reported Dow Jones Newswires.

The company, a unit of Danish industrial conglomerate A P Moller-Maersk, said it would permanently discontinue one of its services and suspend another for the time being. In total, 19 ships with a total transport capacity of 14,500 TEUs will be removed from the trade.

"We expect a three percent slump on the Asia-Europe container trades for 2012 and are taking steps to adjust to this without reducing our market position," the company said.

Maersk Line's AE5 service, which currently operates eight vessels, will be permanently removed as from November 8, while the AE9 service, which operates 11 vessels, will be suspended until early December with immediate effect.

"Where commercially appropriate, Maersk Line will consider additional opportunities to reduce capacity and look for slow-steaming opportunities," Maersk Line said. Slow-steaming is the industry term for sailing at slower speed to save fuel and reduce capacity.

Maersk Line has a global market share of about 15 percent. Asia-Europe is by far its most important trade route, making up some 40 percent of the total volume it transports.

Source: Cargonews Asia