Home Page About us Forum MIL
Tracuu
 



Username
Password
 
Member Register


 
 
 
Login

     

Record deliveries threaten box carriers

4/29/2011 10:41:44 AM

A record level of new containership deliveries in the next few months is expected to add further downward pressure on freight rates that are already below break-even on the Asia-Europe trade.

According to Alphaliner, a total of 26 ships for 168,000 TEU had already been delivered in this month, putting April on track for the highest level of monthly deliveries on record – 32 ships totalling 226,500 TEU, the market intelligence provider said in its weekly newsletter.

A further 41 ships of 204,000 TEU are due in May, bringing total deliveries in the first five months of this year to 688,000 TEU.

Cooling demand, combined with the high level of newbuilding deliveries and the return of idle capacity, is bringing back the spectre of vessel oversupply, Alphaliner said.

This has led to a significant fall in spot market freight rates, especially on the Asia-Europe route.

Carriers continued to add capacity to the east-west routes, largely outpacing withdrawals through cascading. Shipping lines now express fears that any serious oversupply on the east-west routes could lead to excessive vessel cascading into the north-south trades.

This would further accelerate rate decline in these trade areas.

Total deliveries in 2011 are expected to reach 1.35 million TEUs, based on Alphaliner’s figures, which are already adjusted for delivery deferrals.

Cellular capacity growth this year is forecast at 8.6 percent, including provisions for scrapping. Hence, the demand-supply balance is gradually moving against the shipowners’ favour.

 

Cargonews Asia

RELATED NEWS
Rate hikes return, Asia-Med US$1,356/TEU, Asia-Europe $1,418/TEU (1/14/2013 10:07:49 AM)
Containership capacity squeeze looms on non-mainline services (12/25/2012 10:15:46 AM)
Bulk Goods Shift to Boxes in Africa-Asia Trade (12/10/2012 10:33:02 AM)
Third China Europe box rail line opens, this one from Suzhou to Poland (12/3/2012 10:32:42 AM)
Korean ports see box volumes shrink (11/12/2012 11:48:09 AM)
Asia-Europe rates continue to increase (11/6/2012 10:32:35 AM)
Rotterdam Container Traffic Drops 1.1 Percent (11/2/2012 10:16:11 AM)
West Coast Container Volumes Fell 1 Percent in September (11/2/2012 10:15:33 AM)
Evergreen names sixth 8,452-TEU ship in fleet replenishment scheme (10/23/2012 10:12:40 AM)
Top 20 shipping lines add 844,000 TEU to fleet over 12-month period (9/13/2012 10:50:28 AM)
OTHER NEWS
COMMENTS

Your comment

Content:
Email / Name / Tel:
 
The most comprehensive and easy-to-use global marine weather application
With the Courtesy of Bao Hoang Yachts Co.
Click "HERE" to get your own 30day free trail
or contact Ms Phuong Bui at Vietnam Shipper:
phuongbq@vil.com.vn / 08.39330 148

On its way to develop alternative energy-sources for greener aviation, Airbus is also supporting basic research activities for electric aircraft concepts “eGenius”...
more ...
 
Which column are you most interested in VietnamShipper?
Very great
Great
Normal
Not very great

© 2005 Copyright byVietnam Institute of Logistics/ Vietnam Shipper. All right reserved. --- Contact for Advertisement

25th Floor, Pearl Plaza - 561A Dien Bien Phu Str., Binh Thanh Dist. HCMC - Vietnam - Tel: (+84.8) 3513 6399 - Fax: (+84.8) 3513 6359 - Email: admin@vietnamshipper.com