Wednesday, January 17, 2018

Shipping: Today's Word Is 'Overcapacity'

Two via gCaptain, January 10. First up, from Bloomberg:

More Mega-Ships Are a Big Problem for Cargo Carriers
Container shipping companies are bracing for a challenging year — they will have more space available for carrying goods than the amount of cargo that’s out there.

Corrine Png, chief executive officer of research firm Crucial Perspective, estimates freight-carrying capacity on container ships will rise 5.9 percent this year, outstripping demand growth for the first time since 2015.

That’s largely because more than 40 huge container vessels ordered at least two years ago are ready to be delivered for service, creating an abundance of ship stowage. With some of the space expected to be left empty, container lines could be forced to charge lower fees for shipping goods, even as they try to overcome years of accumulated losses in an industry downturn that has seen at least one company collapse.

More than 90 percent of global trade is transported by sea. The five charts below show what’s in store for shipping companies.

1. More space to carry goods: As more large vessels are delivered and put into service in 2018, ships’ cargo-carrying capacity is expected to expand the most in three years....

And from The Loadstar:

Carriers Beginning to Postpone ULCV Deliveries Amid Overcapacity and Softer Demand
Where contracts allow, ocean carriers are starting to postpone deliveries of new ultra-large container vessels (ULCVs) in the face of the return of the twin challenges of cellular overcapacity and softening demand.

Alphaliner claimed today that Cosco has deferred 10 of the 28 ULCVs it was due to receive this year to 2018 and Yang Ming has pushed back delivery of three 14,000 teu vessels into next year.
Despite these deferrals, Alphaliner calculated there would still be some 1.5m teu of newbuild containerships entering service this year of which 1.2m teu is slated for delivery before the end of June.

And it forecasts that January will be a record month for deliveries, with no less than seven 19,000-21,000 teu vessels expected to join the global fleet – equating to an extra 250,000 teu of capacity.

They include the 21,413 teu OOCL Indonesia, the CMA CGM Antoine de Saint Exupery (20,776 teu), MOL Treasure (20,182 teu), Cosco Shipping Taurus (20,119 teu) and Marseille Maersk and Manchester Maersk sister ships (each 20,568 teu)....


Jan. 4
Global Fleet Capacity to Bulge as More Containerships are Delivered in 2018; Baltic Dry Index Down 21%, Hyundi Heavy Up
I'm going to have to learn how to say "Boom-and-bust cycle" in Korean.....