Alphaliner predicts imbalance in container capacity supply and demand till at least the end of 2019

2 Oct 2017 News 71

Some 150 container vessels of around 300,000 TEU capacity are currently laid up and this number is expected to expand considerably in the next few weeks as demand slows during the northern winter slow season before picking up again ahead of Chinese New Year.

With around 80 Ultra-Large Container Vessels (ULCV) due for delivery before the end of 2019, recent rate improvements are likely to short lived with supply and demand continuing to be seriously out of kilt unless more vessels are scrapped in response to firm prices.

However, there is further trouble ahead as carriers are tempted by rock-bottom new build prices. In September, CMA CGM announced an order for 9 x 22,000 TEU vessels to be built by Hudong-Zhonghua Shipbuilding and Shanghai Waigaoqiao Shipbuilding. For its part, Mediterranean Shipping Company (MSC) confirmed an order for 11 x 22,000 TEU vessels, the largest in that company’s history. All this after Maersk CEO Soren Skou recently stated that “there is no business reason for ordering more big ships for Asia-Europe service strings”.

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