K Line delays 10% of newbuildings

K Line president and chief executive Hiroyuki Maekawa told Lloyd’s List at a conference in Tokyo that the company had delayed close to 10% of the 155 ships it has on order.
The delays are focused on the containership and car carrier segments, which have been particularly hard hit in the global economic crisis as consumer demand has plunged.
The deliveries had been delayed for six to 12 months, Mr Maekawa said.
Along with its partner lines in the container sector, Cosco, Hanjin Shipping and Yang Ming have been cutting and rationalising services in the main east-west trades.
K Line was also laying up vessels and accelerating the scrapping of older vessels.
“The supply and demand gap is enlarged and we as the shipping industry cannot create demand by ourselves, what we can do is adjust vessel supply,” he said.
Mr Maekawa said that the company had not cancelled any orders.
At the end of last month K Line said it was also suspending investments in new vessel orders and returning high-cost vessels that it had chartered in.
For the shipping industry as whole Mr Maekawa said that while 2009 would be very tough, it would hopefully represent the lowest point in the market.
He expects container shipping will face the toughest challenge in terms of recovery