Larger capacity will continue to be phased in during the first half of 2013 on the Asia-North Europe and Asia-Mediterranean trades with the delivery of 13,000 plus TEU vessels.
The giant ships are likely to set off alarm bells even though shipping executives said they believed Europe was beginning to edge out of its economic crisis.
The only relief is that the capacity increases are on a few individual services proviced by alliances and not on the entire Asia-Europe trade. However, this is tempered by the knowledge that all the lines involved in the Asia-Europe trades have substantial megaship newbuilding programmes with delivery from 2013 to 2015.
The G6 lines, comprising the old Grand and New World alliance members, will start deploying the first 13,000 plus TEU vessels of their 2013/2014 newbuilding programme on Loop 5 of the Asia-North Europe service between now and May.
Loop 5 presently operates with a weekly capacity of 8,700 TEUs but by the end of June 13,000 plus TEU vessels deployed on other Asia-Europe loops will switch to Loop 5, boosting weekly capacity by 13,000 TEUs – a staggering 50 percent increase. The 13,200 TEU newbuilding deliveries to be phased in on Loop 5 are NYK Helios in January, OOCL Berlin in March, NYK Hercules in April and OOCL Chongqing in May. The loop’s rotation is Kwangyang, Pusan, Shanghai, Ningbo, Yantian, Shekou, Singapore, Rotterdam, Hamburg, Thamesport, Singapore, Kwangyang.
The G6 alliance will also increase capacity on Loop 4 during the January-June period. The 13,200 TEU newbuilding OOCL Brussels phases in during the latter part of January to replace a 10,000 TEU vessel, and other similar capacity changes are expected through the first half.
The Loop 4 rotation is Ningbo, Shanghai, Yantian, Singapore, Port Said, Le Havre, Southampton, Hamburg, Rotterdam, Jeddah, Singapore, Yantian, Ningbo.
The CKYH Alliance lines are also planning capacity increases in the first half, led by Hanjin and Cosco. The 13,100 TEU Hanjin Harmony will replace 9,900 TEU Hanjin Korea in late March on the NE6 service while Cosco’s 13,100 TEU Fortune and Belgium vessels will replace 10,000 TEU vessels in February and March on the NE3 service.
The question remains whether Europe is actually emerging from its economic woes or the lines are phasing in larger vessels on the Asia-Europe trade because it is the only conduit suited for 13,000+ TEU vessels. Is the Asia-Europe trade going to become another disaster zone because of the capacity overload? Shipping line executives are split on their views.
Cargonews Asia
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