IMDO: Bigger Ships than Maersk’s Triple-E Fuel Market Overcapacity
The G6 liner alliance is planning to outdo P3, its main rival, by ordering even larger container ships than Maersk’s Triple – E which can carry 18,000 teu, Irish Maritime Development Office (IMDO) said in its Weekly Market Review for Week 17.
According to TradeWinds, G6 are considering up to 20 vessels over 19,000 teu as analysts profess cost efficiencies, based on larger cargo volumes per ship, and economies of scale are crucial for G6 to successfully compete on the Asia – Europe trade routes with P3. Alphaliner data shows that currently the average size of P3 ships is around 10,300 teu in comparison 8,200 teu for G6.
The deal is expected to continue to fuel market overcapacity, with analysts believing that 21,000 teu can be the absolute maximum size given yard and port constraints; however plans for 23,000 teu ships have been drawn up.
Within the G6 alliance there is not total agreement over the desired ship size, indicated earlier this year by NYK opting to build 14,000 teu ships rather than go for larger tonnage.
NYK president explained the move by pointing to problems with port restrictions and inefficient port operations in relation to megaships and his belief that smaller is better.
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IMDO, May 5, 2014