Tag: containerships

Analyst fears overcapacity will upset unstable supply-demand balance The high volatility experienced in the container shipping market over the past few years will continue for another four years, according to one analyst.Analyst SeaIntel said changing market conditions and economic developments had caused the balance between the supply of ships and demand for space on those vessels to become increasingly unstable since 2009.And until these factors subside, which SeaIntel does not expect to happen for three or four years, the highly volatile conditions experienced in 2009, 2010 and 2011 are predicted to continue.The analyst blamed several changes in the market for the volatility. Firstly, carriers were still coming to terms with changing trade distances.In the past 30 years, global demand for container shipping had grown by 8-9% a year, but vessel supply had grown by around 11%, SeaIntel said.However, this had not resulted in oversupply of capacity, because the excess vessels were absorbed by lengthening sea journeys as production moved further away from final destination.But production is now largely as far from final destination as it can get in the US and Europe.A second factor for the volatility is the slowdown of growth on the head-haul direction of trade routes.SeaIntel said ...

Hong Kong Merchant Shipping Information Note Containers on board a Hong Kong registered container vessel fell overboard and pierced the bunker oil tanks causing devastating oil spill. This information note draws the attention of the shipowners, ship managers, ship operators and officers the lessons learnt in the accident.The Incident1. A Hong Kong registered container vessel lost 31 containers overboard in gale force weather during cyclone off the coast of southeast Queensland, Australia. About 270 tonnes of fuel leaked into the sea as a result of the damage to the bunker tanks caused by the overboard containers. The oil spilled into the sea causing serious pollution.2. The investigation into the incident conducted by the Australian Transport Safety Bureau revealed that the condition of the cargo lashing equipment was poor and its maintenance and inspection programme was inadequate.Lessons Learnt3. The maintenance of cargo securing gears is of vital importance to ship stability, safety of life at sea and protection of the marine environment. A maintenance and inspection progromme should be established and implemented to ensure the condition of the cargo securing gears are properly maintained at all times.4. The attention of shipowners, ship managers, ship operators, master and officers of container vessels ...

Top 20 carriers now control 84% of the total industry capacity Concentration levels in the container shipping industry during the past year have soared to the highest levels ever recorded, as smaller carriers retreat and larger liner companies gain market share.According to analyst Alphaliner, the liner industry concentration index reached a record high as large carriers "reasserted their dominance in the market, leaving little room for small carriers to compete".The top 20 carriers now control 84% of the total industry capacity, their highest level, according to Alphaliner records.Industry concentration levels, expressed by the Herfindahl Index, have reached 6.2%, compared with 3.6% in 2000.The Herfindahl Index is a measure of the size of firms in relation to the industry, and is an indicator of the amount of competition among them. Increases in the index generally indicate a decrease in competition and an increase of market power."Over the past decade the index increased, as larger carriers have continued to consolidate their business, squeezing smaller competitors out of the market," said Alphaliner.The competitive operating environment has forced several start-up carriers to exit the market in the last two months, it said."The larger carriers' market share retreated briefly in 2009-2010 as the prevailing, very ...

South Korea unveils a mobile harbor South Korea has unveiled a mobile harbor designed to allow the loading and unloading of container ships at sea.The Korea Advanced Institute of Science and Technology (KAIST) says the harbor combines two technologies that could revolutionize port systems around the world.

Large container ships puts more pressure on freight rates Smaller vessel operators could be forced out of Asia-Europe container trade lanes as the deployment of ultra-large container ships puts more pressure on freight rates and the bottom line, according to one Hong Kong-based analyst.Janet Lewis, regional head of industrials and shipping research in Asia at Macquarie Capital Securities, said the influx of vessels of more than 10,000 20-foot equivalents onto Asia-Europe lanes was the prime cause of the rates collapse over the last nine months.Volumes have been relatively robust, so it would appear to be the fact that not enough capacity has been taken off to adjust for the arrival of the ULCSs, she said.Lewis warned some smaller lines could face financial difficulties because of the poor pricing outlook but said it was too early to say whether the situation will reach a point where we see failures as a result of financial distress.At the least we believe there will be a marginalization of smaller players who cant compete on the Asia-Europe route. Indeed it could be in their financial interests to withdraw from what will inevitably be an unprofitable route for operators of smaller vessels.Lewis predicted most carriers would ...

Need of a correction on the supply side The container industry is in dire need of a correction on the supply side and even the realisation of a decent peak season demand surge this summer will not provide enough momentum to lift severely eroded freight rates in the key east-west trades.Container operators will find it a very challenging environment this year in which to make money, but there is a major difference between this year and the recession-ravaged 2009. We are forecasting an 8.1% growth in global container traffic for 2011 and so, other than rising fuel costs, responsibility for the inability to run their business models profitably can only be laid at the feet of the carriers themselves.Ocean carriers have continued to launch new services in the key east-west trade lanes, many of them also upgraded with the latest 13,000 teu giants delivered from South Korean yards, but this has severely contributed to overcapacity with average load factors in the headhaul transpacific and Asia to Europe routes remaining at only 80-85%.In this environment, freight rates have massively declined on the Asia to North Europe route where in some cases spot rates are not even covering quoted bunker surcharges of ...

The vessel beached 100 metres off the shore Angolan firefighters on May 27, 2011, were struggling to control a fire on the "UAL Antwerp" in the entrance of Luanda port.A 40-ft-container aboard the ship which just had arrived coming from Houston had caught fire on June 26 at 11:30 a.m. LT, and the fire spread to other containers some of which were feared to contain petroleum products or nitrogen. Dense fume started to emerge, while offshore suppliers rushed to the scene and started with fire fighting attempts. The fire was obviously contained in the morning of June 28, and the vessel beached 100 metres off the shore.Source: Vessel Tracker

Building 2 New 8,600TEU Containerships Mitsui O.S.K. Lines, Ltd. (MOL; President: Koichi Muto) today announced a decision to order two containerships (8,600 TEU) from Mitsubishi Heavy Industries, Ltd., with delivery slated for 2013. Along with eight 8,100 TEU ships already in operation, the new vessels will be deployed to Asia-Europe routes.The company also reached an agreement with NOL Group* for a three-year charter of five large containerships (14,000 TEU) of 10 that NOL Group has on order. The five chartered ships will be delivered in 2013 - 2014 and will serve with the other five operated by APL on Asia-Europe routes."Expansion of the fleet will secure needed capacity on the East-West route, and allow us to provide high-quality, competitive services. MOL works continuously to further improve and optimise its service, and is reviewing the need for an expansion of the fleet on not only East-West trades but also all other routes for the benefit of our customers," said Junichiro Ikeda, CEO, MOL Liner.Source: MOL

Alphaliner warns for further rate competition The race to order ultra large container ships as ocean carriers seek lower capital and operating costs will lead to increased rate completion as lines strive to fill their vessels, Alphaliner warned.Carriers are expected to firm up orders for more than 50 ships with capacities exceeding 10,000 20-foot equivalent units by the end of the year, according to the container market analyst.They will join 147 similar sized vessels due for delivery over the next four years and the 98 that have been delivered since 2008.The carriers inability to rein in the huge appetite for new and larger tonnage will inevitably lead to further rate competition, Alphaliner noted.The latest carrier to join the race is APL, which signed deals for 10 14,000 TEUs ships, some 64 percent larger than the biggest ships the carrier currently operates.Koreas Hanjin Shipping subsequently confirmed an $846 million order for five 13,000 TEUs vessels.In the past six months OOCL, Hapag-Lloyd and NYK are also announced plans to order or charter ships of above 13,000 TEUs, joining nine carriers who have already placed orders for ships of this size.Only seven out of the top 20 carriers have still not placed orders ...

Two crewmembers including the captain were slightly injured Two crewmembers including the captain were slightly injured when the "Deneb" on June 11, 2011, suddenly heeled to starboard in Algerias. 101 meters long Germany based company owned container ship capsized in Algeriask, at Maersk container terminal, 2 injured including captain.Two crewmembers including the captain were slightly injured when the "Deneb" on June 11, 2011, suddenly heeled to starboard in Algerias.At 3:30 loading operations were stopped by MAL and SG Portainer because of stability problems.Short time later the ship began to list toward the quay at 1.55 p.m.When the ship began to list the dock quickly escaped by jumping overboard and fall into the water without damage, there were 2 non-serious injuries among the crew, it seems that a sailor was hurt in the arm and the captain struck in the mouth, fortunately no serious injuries manifested.Began to list at 13.55 before the helpless eyes of the stevedores who watched the scene as it was when it occurred is the shift and in the area were the 2 turns, the incoming and outgoing.Oil booms were laid out around the vessel, and 2 tugs were pushing from the seaward port side prevent further ...