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

ULCV grip on Asia-Europe trades increasing

Ultra-large container vessels (ULCV) loading at least 18,000 TEU are set to play a dominant role in the Asia/Europe/Asia trade within the next two years
Linked InTwitterFacebook

 According to Copenhagen-based SeaIntelligence’s latest research, ULCVs will account for 43% of all capacity deployed on the route by the end of 2017 and about 61% by the close of 2018, This compares with a share of 35% (58 ships) currently and the forecast is based on this sector’s slot capacity rising by 5% per annum.

This is highly likely given that SeaIntel identified 47 ULCVs as being earmarked for delivery over this period of time. Since 2013 when Maersk Line took delivery of its first Triple-E containership, a relentless build-up in this class of vessel has occurred on the trade.

Alan Murphy, CEO of SeaIntel, attributed this to “such ships as offering ocean carriers the best scale economics on long trades with large cargo volumes”.

But he warned that it was not all good news and that ULCVs presented liner companies with huge challenges. “Firstly, they can serve as a dampener on future freight rate levels as prices are significantly influenced by the low slot costs offered by ULCVs.

“Second, the ships increase the load on ports and terminals as ULCVs lead to massive bursts in the number of containers that have to be handled at once. This can pose a major challenge to ports and terminals and downstream on the hinterland.

"Third, assuming that the Asia-North Europe trade lane can only absorb an additional 5% capacity per year, the new mega-vessels being delivered will push out vessels currently in deployment and as these vessels are too young to be considered for scrapping, they will have to be cascaded to other trades.”

The research suggests that overcapacity in the Asia-Europe trade is likely continue for some time yet and that the “wash from these ships” will affect markets elsewhere, too.

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

Dramatic ports takeover in Latvia

At an extraordinary meeting on 11 December, Latvia’s government called on the na...

Ceyport secures funds to expand

Port has secured US$35M in loans to support its capacity expansion and modernisa...

Thermo King to be part of “Trane Technologies”

Thermo King will be part of Ingersoll-Rand’s new “pure-play climate company.”

Wilhelmsen teams with TTI and Semtech on IoT network

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