Pacific International Lines (PIL) is culling its transpacific liner services in what it describes as a service re-alignment.

A minor player on the Pacific, PIL’s departure is likely to make little difference to the overcapacity problems caused by the ongoing trade war between China and the United States.

Its last transpacific departure will be in March.

PIL operates four liner service from China to the US West Coast and a single service between Vietnam and Los Angeles.

On some routes the company is a tonnage provider in conjunction with other partners such as Cosco and Wan Hai Lines, while on other routes it operates through slot purchase agreements.

The US-China trade war is causing severe problems for transpacific liner operators who have been experiencing declining volumes and rates. Last year saw the first annual drop in container volumes in almost 10 years.

In a statement released on Friday, PIL said it had taken the decision to quit the transpacific trade as part of a wider strategic review of its business.

Its future focus will be on further strengthening its position in its niche North-South trades such as Africa, Middle East, Red Sea, Indian Sub-Continent, Latin America, and Oceania.

These trades have long been the company’s core business, where it enjoys a strong market share.

In contrast, PIL has always had something akin to a love/hate relationship with the transpacific sector, having entered and exited it several times.

With strong alliances putting pressure on independent operators on the Pacific, it makes sense for a player with a tiny market share such as PIL to cut its losses and get out quickly.

Managing director Teo Siong Seng has often described the family-owned company as being a nimble street fighter, able to move in and out of sectors when it is prudent to do so.

PIL is in amongst the world’s top 10 containership operators by vessel numbers, with a fleet of around 150 boxships, bulkers and multi-purpose vessels.