Senator Lines goes BUST

The global economic recession claimed its first major victim in the container shipping sector.

German carrier Senator Lines announced on 4 February 2009 that it would cease operations, effective the end of this month.

The Bremen-headquartered line, which since 1997 has been 80% owned by the Korean shipping operator Hanjin Shipping, said its shareholders and board had decided on the shutdown "as a result of the financial and economic crisis and − as a consequence thereof − reduced volumes together with overcapacity and extreme unhealthy competition, especially on the east-west routes".

According to the board of Senator Lines, there are no positive signals to be foreseen for 2009 and there are not even any freight rate improvements visible in the long term. All these facts have resulted in this painful decision."

The remaining shares in Senator, which was founded in 1987, are held by Bremer Investitionsgesellschaft in Bremen and shipping company F. Laeisz in Hamburg, with 10% each.

The line specialised in serving Far East-Middle East-Northern Europe trade lanes.

They used to offer a total of 14 liner services involving approximately 1,570 voyages per year.

They are a shipping company that specializes in slot chartering, mainly having chartered the space from the members of CYKHS (Cosco, Yang Ming, K-Line, Hanjin, Senator) Alliance. However, they do have space arrangement with Hamburg Sud, Hapag Lloyd, CSAV, MSC and MOL, too.

Source: Supply Chain Leaders Intelligence