Container Shipping Market Essay Example for Free

Container Shipping Market EssaySavannah and sort Everglades to their joint atomic number 63-Ecuador dish up to cover the Europe-South US East Coast market. The service lead put out to call at the Balboa hub in both directions to allow transhipment to other ports on the West Coast of South America. The rotation will be stretched to seven weeks, development 7 x 4,1324,872 TEU Panamaxes with high reefer efficiency. SITC has placed an order for two 1,800 TEU container ships, with options for sestet more, from Taiwanese shipyard CSBC. This is the shipbuilders first order from a mainland Chinese company for more than 20 years. The firm vessels are priced at $23m each, and are scheduled for deli very in late 2014. Page 2 Licensed to The Hong Kong Polytechnic University. Distribution is restricted please remember to admit the source. http//www. clarksons. net 12/05/2013 092016 15304 M TEU 1. 25 Jan-10 Jan-11 Jan-12 Jan-13 Jan-12 Jan-13 According to the ingrain Containerised Fr octonary Index, spot rates for boxes shipped from Shanghai to Europe fell to th $940/TEU on the 12 April, their lowest level since February last year and a 34% fall since mid-March, as the ains made by the last bout of general rate increases proved short-lived.As a result of this market weakness, a number of carriers including Maersk Line and Hapag-Lloyd have postponed a second round of rate increases originally scheduled for mid-April. They will now be implemented during May. Elsewhere, freight rates for boxes shipped from Shanghai to the West Coast of America stood at $2,226/FEU, 3% under the full year 2012 average, and 11% below the January 2013 peak of $2,520/FEU. Clarkson Research ServicesStriking dockworkers at the Kwai Tsing Container Terminals in the port of Hong Kong caused significant mental disorder to a large number of liner services. Vessels faced 2-3 day berthing delays, while over 100,000 TEU of cargo was reportedly stuck on the quayside. Major carriers cancelled calls and diverted ships to other Pearl River ports such as Chiwan and Shekou, with shippers forced to tranship inward cargo back to Hong Kong on Feeder vessels. Marchs container throughput of 1. 88m TEU at the port represented an 8. 6% y-o-y decrease, yet the strike disruption is likely to affect Aprils box handling volumes even more severely.Maersk Line is to increase the capacity of its India-Middle EastUS East Coast service with the replacement of 7 x 4,800 Panamax vessels with eight ships of 6,500 TEU the service turning in eight rather than seven weeks. An additional call at Algeciras will be made in both directions, while there will also be a degree of further slow steaming. The newly deployed vessels are expected to be reflagged to the US flag in order MSC is to launch a Far East-East Coast South America service using 11 x 3,000-5,000 TEU ships. The vessels include a number of Panamaxes reportedly chartered in at very low rates.The eleven week rotation will include a call i n Port Elizabeth on the return leg with the first sailing is scheduled from Shanghai on the th 18 April. UASC is to enter the Far East-West Coast North America trade for the first time after agreeing to join with CSCL on three separate Transpacific services. The Kuwaitheadquartered carrier will provide two Panamaxes for a service that calls in Seattle and Vancouver, and three for a Nansha-Los Angeles service. Idle Containership Fleet 12% 9% 6% 3% 0% Jan-10 Jan-11 Jan-12 Jan-13 % of total surpass capacity, TEU Source CRSL, AXSLicensed to The Hong Kong Polytechnic University. Distribution is restricted please remember to acknowledge the source. http//www. clarksons. net 12/05/2013 092016 15304 According to data reported by Alphaliner, the total containership capacity in lay-up reached 0. 83m TEU on th 25 March, with 269 vessels sitting idle. This is equivalent to 5. 1% of the fleet in terms of capacity. Over Q1 2013 the proportion of total capacity in lay-up fluctuated between 4. 6% and 5. 3%, while across full year 2012 an average of 4. 1% of capacity was idle.Briskly expanding consumer motivation in emerging economies should promote strong development of North-South trades, which are projected to grow by 6. 0% this year. Meanwhile, intra-regional trade is expected to grow by 7. 6% in full year 2013, with intra-Asian trade process abideing the powerhouse. Global container capable supply maturement is expected to be broadly in proportion with global demand growth in 2013. Carriers will continue to dampen actual running capacity growth on the mainlanes in an effort to support freight rates. Managing the capacity cascade will remain rucial in determining trade lane supply, while further slow steaming may continue to absorb some of the capacity growth. However, the volume of idle tonnage is likely to continue to supress earnings in the charter market. Meanwhile, demolition remains at elevated levels. In conjunction with the paucity of ordering, this rapid ra te of scrapping has resulted in a shrinking fleet in the smaller size sectors. Overall, while supply growth may accelerate slightly this year, the orderbook schedule for 2014+ delivery still looks relatively thin.