Container Shipping Market Essay Example for Free

Container Shipping Market EssaySavannah and Port Everglades to their joint Europe-Ecuador service to c all over the Europe-South US atomic number 99 Coast mart. The service will continue to call at the Balboa hub in both directions to allow transhipment to other ports on the West Coast of South America. The whirling will be stretched to seven weeks, using 7 x 4,1324,872 TEU Panamaxes with high reefer energy. SITC has placed an order for two 1,800 TEU containerships, with options for six more, from Taiwanese shipyard CSBC. This is the shipbuilders first order from a mainland Chinese company for more than 20 classs. The firm vessels are priced at $23m each, and are scheduled for delivery in belatedly 2014. Page 2 Licensed to The Hong Kong Polytechnic University. Distribution is restricted revel remember to acknowledge 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 Shanghai Containerised Frei ght 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 family and a 34% fall since mid-March, as the ains made by the last round 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, incumbrance rates for boxes shipped from Shanghai to the West Coast of America stood at $2,226/FEU, 3% below the full year 2012 average, and 11% below the January 2013 peak of $2,520/FEU. Clarkson Research serviceStriking dockworkers at the Kwai Tsing Container Terminals in the port of Hong Kong caused significant disruption 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 inbound 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 intervention 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 withal 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 set in motion 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 inclu de a call in Port Elizabeth on the return stagecoach 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 prison term after agreeing to cooperate 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. weak Containership Fleet 12% 9% 6% 3% 0% Jan-10 Jan-11 Jan-12 Jan-13 % of total fleet 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 layup 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 in capacitate fluctuated between 4. 6% and 5. 3%, while across full year 2012 an average of 4. 1% of capacity was idle.Briskly expanding consumer demand in emerging economies should get up 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 appendage remaining the powerhouse. Global container capable supply growth is expected to be broadly in balance 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 shower bath 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 famin e of ordering, this rapid rate of scrapping has resulted in a shrinking fleet in the smaller size sectors. Overall, while supply growth may accelerate middling this year, the orderbook schedule for 2014+ delivery still looks relatively thin.