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Challenges for Super Large Container Ships in Container Market


Nov 28 2015

A few days ago, Maersk Line, a leading company in the container shipping market, said that the efficiency of large vessels is being challenged by the current dynamic changes in the container shipping market.
 
 
The company's global chief operating officer, Soren Toft, said that in the past, larger container ships meant lower costs, but currently the ship charter and fuel prices in the container shipping market are at relatively low levels, which makes 6000 TEU container ships and 10,000 TEU Container ships are at the same level in terms of operating costs. This dynamic challenge is affecting the operation of very large container ships.
 
It is reported that, as the world's first 3E container shipowner who ordered 18,000TEU and the first shipping company to operate 18,000-20000TEU container ship, Maersk Line is facing the problem of idle large container ships.
 
Due to the sluggish freight rates, Maersk Line has idled one of its 18000TEU 3E container ships and said that more large container ships will join the "unemployed" team. Maersk Line said that the current overcapacity has caused huge challenges for container shipping, especially the Asia-Europe trade routes. The market with negative demand growth has been severely damaged by newly delivered ultra-large container ships. Unless there are new changes in the situation, more container ships will be idle before the Chinese New Year.
 
Soren Toft said that while owning a larger ship, it also means that the ship will have to call at more ports to achieve its economies of scale, but it also means that the ship may face more emergencies . Therefore, although owning a large ship can bring economic benefits, shipping companies must also consider more issues.
 
Soren Toft said that since 2004, the average freight rate has dropped by 1.9% per year, and this trend is expected to continue. In view of the current sluggish growth in the demand of the container shipping market, Maersk expects that the company's capacity in 2016 will be the same as this year.

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