10 Feb Can Container Lines Withstand A Massive Increase In Vessel Capacity?
The global ocean container trades are in a precarious state. Following a period of seesawing freight rates and persistent service failures, ocean carriers and shippers are struggling to achieve some measure of equilibrium. But a flood of new vessel capacity, scheduled to enter service over the next several years, threatens to exacerbate the overall imbalance.
Currently there are just over 6,500 containerships in service around the world, with total capacity of 26.39 million 20-foot equivalent units (TEUs). But in the next two years, vessels on order will add 7.48 million TEUs — an overall capacity increase of nearly 30% – the largest order book of containerships in history. How will it impact shipping lines? Will it improve service reliability? Who will be the dominant force: the carrier or shipper? Read this insightful article to find out.
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Rachael Budd & The Transolve Global Team