Page 44: of Maritime Reporter Magazine (June 2017)

U.S. Navy Quarterly

Read this page in Pdf, Flash or Html5 edition of June 2017 Maritime Reporter Magazine

world yearbook 2017

CONTAINERSHIP CONTAINERSHIPPING

Consolidation is a big talking point as no vessels are removed from active CVs currently on order vs a live ULCV with new panamax and neo panamaxes for this industry with 2016 being the service. Instead great ef? ciencies be- ? eet of 2.9 million TEU. The majority taking the work of the panamax vessels, year for mergers and alliance creation tween the largest liners are improved of these ultra large container vessels while the latter have been stealing sub- between the largest container ? eets, in order to maintain a pro? t in cur- are scheduled to hit the water over the panamax cargoes. Looking towards the both in terms of their total capacity rent market conditions. Ultimately the next 18 months: 1.8 million teu have future of the industry, a natural divide as well as the size of vessels they run. smaller ? eet owners and mid size lines delivery dates before 2019. Aside from is occurring between the bigger routes

Earlier this year there was a feeder are the ones who will bear the brunt of scrapping, this means that owners need and bigger ships, with owners pushing consolidation deal (?), which suggests the market downturn. to see a lot more consolidation in order for the largest economies of scale pos- this trend is spreading to other con- To further exacerbate the imbalance to survive. sible which may even include routes tainer sizes. However consolidation between supply and demand, there is This appetite for larger and large ves- being run by 25-26k teu vessels, and does not affect supply and demand due currently over 2.1 million TEU of UL- sels has encouraged a cascading effect the common feeder operators.

44 Maritime Reporter & Engineering News • JUNE 2017

MR #6 (42-49).indd 44 MR #6 (42-49).indd 44 6/7/2017 11:57:07 AM6/7/2017 11:57:07 AM

Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.