"K" Line suspends shipping to Rangoon-MIZZIMA

http://www.mizzima.com/news/regional/1192-qkq-line-suspends-shipping-to-rangoon.html

by Mungpi
Friday, 24 October 2008 17:49

Chiang Mai - "K" Line Singapore Pte Ltd, the regional ship operator for Japanese shipping company Kawasaki Kisen Kaisha Ltd, has temporarily suspended the shipment of container cargo to Burma and plans to terminate business entirely in the coming month.

A customer care executive at "K" Line Singapore said that shipment to the port of Rangoon was first suspended about two months ago.

The executive, however, did not provide any details regarding the reason for the suspension.

"K" Line Singapore serves as one of the world's largest ship operators, calling on ports in Malaysia, Indonesia, Vietnam, Western Australia, South Asia and Cambodia – in addition to Burma.

A source in the export and import business in Burma told Mizzima that cargo ships that arrive to the port of Rangoon have lately returned empty, as traders in Burma are unable to export goods that would otherwise be carried back by the ships.

"The Japanese 'K' Line container ships plan to terminate all business in Burma. They plan to withdraw by November 2 at the latest," an agent who helps traders to apply for import and export permits in Rangoon told Mizzima.

An official in the general administrative department of "K" Line Singapore, while confirming that the company had earlier maintained business links with Burma – such as the transport of cargo containers, refused to comment on the suspension of trade with Rangoon port.



"I am afraid I cannot tell you anything at the moment, it is sensitive," said Pal, an official in the operations department of the company.

While the reason for the suspension remains a unknown, an economist in Rangoon speculated it could be at least partly a result of the current global financial crisis. The economist also predicted that the impact will grow.

Since 1988, "K" Line Singapore had shipped containers, car carriers, bulk and tankers to Rangoon port as a regional service department for Kawasaki Kisen Kaisha, as well as conducting business development, trade management and general operations in Burma on behalf of the parent company.