Industry Has Mind Made Up on Ultra-Large Containerships, Drewry Says

Global delivery consultancy Drewry says a latest order from China COSCO for 11 ultra-large containerships (ULCVs) underscores the trade’s place that enormous containerships are the way in which of the longer term.

China COSCO final week confirmed the a lot anticipated $1.5 billion order for 11 19,000 TEU ships from 4 totally different Chinese yards. The vessels are scheduled for supply in 2018.

Drewry notes that the “arms race” for ULCVs of 18,000 TEU and above continues shortly, with 9 carriers now, together with COSCO, who both have ships of this measurement at present of their fleet of on order. More are anticipated to comply with as China Shipping Container Lines (CSCL) is reportedly is on the verge of order 11 extra ULCVs, whereas Japanese shipyard Imabari has additionally reportedly obtained an order for 4 20,000 TEU items from an unidentified proprietor, Drewry studies.

According to Drewry, the typical value for every ship ordered by COSCO is available in at $137.4 million, a reduction of round $10-20 million paid by different strains for similar-sized vessels, a measure of the Chinese shipbuilding trade’s want for brand new orders. So far the overwhelming majority of ULCVs have up to now been ordered from South Korea. Drewry provides to provide a way of the newbuild value deflation, Maersk’s 20 18,000 TEU “Triple-E’s” ordered in February 2011 value $190 million per ship.

“There is no going back from this point as the industry has made it abundantly clear that they see these ULCVs as the future,” says Drewry in an article published to its website.

But latest developments have uncovered their inflexibility considerably, leaving carriers juggling with the newfound capability, Drewry says. “The alarming drop in Asia to Europe traffic and a parallel crash in rates caused two of the big carriers groups to take the unprecedented decision to suspend services in the supposed peak season, while the two other alliances have been tinkering with missed sailings in order to try and support higher rate requests.”