Filter content by area of interest
Ports & Terminals
Port AuthoritiesContainerBulkBreakbulk/General CargoRo-Ro/AutomotiveGTOs
Cargo Handling Equipment
STS CranesYard CranesMobile CHERo-Ro EquipmentBreakbulk EquipmentLow ThroughputBulk Handling Equipment
Shipping & Logistics
Container ShippingBreakbulk/General CargoRo-Ro ShippingDry Bulk ShippingLiquid cargoesLogistics
ICT
TOSPlanning & Optimisation TechnologyWiFiMobile ComputingPort Community SystemsAsset Tracking & Monitoring
Automation
Automated EquipmentGate AutomationRemote ControlProcess Automation
Multimodal
RailInland WaterwaysShortsea ShippingRoadAir-Cargo
Container Industry
Container manufactureContainer leasingRepair/StorageTradingConversion/Innovation
Refrigeration
Operations/TransportContainer leasingEquipmentM&R/Storage
Breakbulk
General cargoProject Cargo/Heavy LiftForest productsRo-Ro/AutomotiveAgribulks
Safety & Security
InsuranceHazardous cargoLashings/SecuringLegal/Regulatory
Civil Engineering
Port & terminal construction/designCivil & Consulting EngineersDredging & ReclamationMooring & FenderingLightingPaving & Surfacing
Environment
Business
InsuranceLegal/RegulatoryAppointments/PeopleMergers/Acquisitions/RestructuringFinance/Financial ResultsTrade & Professional AssociationsBusiness/Commerce Miscellaneous
 View all Topics View all Topics A-Z
More View all Topics View all Topics A-Z

You are viewing 1 of your 1 guest articles


register  or  login  for full access to online news

“The slow way to recovery”

That is how Stefan Verberckmoes, shipping analyst and editor for North Europe at research group Alphaliner, views the current state of the liner shipping industry.

Linked InTwitterFacebookeCard

In a key note address at Intermodal Europe 2018 in Rotterdam, he said that while 2019 would see an improvement in the sector’s supply/demand balance it would not be until 2020 that all excess slots will have been absorbed and that operating margins would pick up.

 

“Carriers are losing money and operating margins have been negative throughout 2018 with overcapacity the main reason for this.” said Verberckmoes. “Year-on year (up to October 2018), our data reveals that the fleet grew by 6% to 22.2M TEU with 579,666 TEU currently idled.

 

“The orders backlog is 2.9M TEU, which is equivalent to 13% of existing slot capacity. We expect 874,000 TEU of this to be delivered in 2019 with capacity in vessels loading 10,000 TEU and above set to increase by 11%. That will be in excess of projected trade growth and this will slow the recovery.”

 

The analyst also pointed to the growing imbalance within the fleet and the ongoing disruption caused by the introduction of megamax ships. “Over 38% of the orderbook comprises megamax tonnage for the Asia/Europe route, a trade which posted growth of just 0.1% in the first eight months of 2018, explained Verberckmoes.

 

“As every new entrant pushes another ship into another trade, we expect the cascading of large 9,000/10.000 TEU ships into secondary east-west and north-south routes to have a major impact on margins in 2019. Meanwhile, medium-sized shipping lines without mega ships will be further squeezed.

Linked InTwitterFacebookeCard

You may also be interested in...

Hutchison raises rail questions

Crowley selects XVELA

Sails for rockets

CMP/DFDS plug-in

Shore power push in Germany

Tracking in Algeria

Related Stories

Wilhelmsen teams with TTI and Semtech on IoT network

The Wilhelmsen group is to implement a new IoT maritime network featuring the Lo...

P&I clubs join forces

The Britannia Steam Ship Insurance Association Limited (Britannia P&I) and The K...

DNV GL and Huangpu-Wenchong sign agreement on LNG dual-fuel feeder vessel

Companies announce a Joint Development Project (JDP) for a 5,000 TEU LNG dual-fu...

CMA CGM & Total sign LNG agreement

Total will supply LNG to fuel CMA-CGMs future 15,000 TEU vessels at Marseille.
Linked In
Twitter