Big ship orders keep focus on carrier supply pressures

Attempts by carriers to tackle the capacity overhang are being undone as new orders for Ultra Large Container Vessels (ULCVs) continue to make the headlines, according to Drewry monthly report, Sea & Air Shipper Insight.

The news that China Shipping Container Lines will join Maersk in the super-size containership club following board approval for five 18,000 TEU ships is further proof of the demand for these fuel-efficient ULCVs among the major lines - it is just a question of when and how many will make the leap.

However, while these latest new orders won? actually hit the water for years, their psychological impact is to keep the focus on capacity and the big question of how on earth carriers will be able to absorb it all.

Ocean carriers did a decent job over the winter months balancing supply to ensure that freight rates remained relatively firm, but the delivery of big new ships - leading to new services and upgrades of existing loops - will mean lines will find that task increasingly difficult for the remainder of 2013,"said Simon Heaney, research manager at Drewry. < Korea Shipping Gazette >