New vessels put pressure on lines
April 28, 2011
Shipping lines are set to come under increasing pressure on rates over the coming months as a record number of ships are due to be delivered in April.
The latest figures released by analyst Alphaliner show that 32 containerships, representing 226,500teu, are due to be delivered in April, which is the highest level of monthly deliveries on record.
In March, 26 ships, or 168,000 teu, were delivered and a further 41 ships, or 204,00teu, are due to be delivered in May.
This means 430,000teu of new capacity will be delivered over the April-May period. Deliveries over these two months alone will represent 3% of the total cellular fleet.
For the first five months of the year, 688,00 teu of new vessel capacity is due to be delivered and total deliveries in 2011 are expected to reach 1.35 million teu, based on Alphaliner’s figures, which are already adjusted for delivery deferrals.
Alphaliner said the high number of deliveries so far this year was partly due to deliveries being deferred in 2009 and 2010.
As funding issues have been resolved for the majority of these ships, further delivery delays are unlikely.
Alphaliner said: “A record level of new containership deliveries in the next few months is expected to add further downward pressure on freight rates and reverse the rise in charter rates.
“Cellular capacity growth this year is forecast at 8.6%, including provisions for scrapping.
“Hence, the demand-supply balance is gradually moving against the shipowners’ favour.
“Early indicators of 2011-demand growth raise worries and the weak growth in South China is of particular concern for carriers.
“These capacity additions are coming even as demand growth shows signs of slowing down – South China ports registered throughput growth of only 2.4% in the first three months of this year.”
Hong Kong, Shenzhen and Guangzhou recorded an aggregate volume growth of only 2.4% in the first quarter, a significant slowdown compared to the 23.7% growth at these ports in the same period of 2010.
The latest figures released by analyst Alphaliner show that 32 containerships, representing 226,500teu, are due to be delivered in April, which is the highest level of monthly deliveries on record.
In March, 26 ships, or 168,000 teu, were delivered and a further 41 ships, or 204,00teu, are due to be delivered in May.
This means 430,000teu of new capacity will be delivered over the April-May period. Deliveries over these two months alone will represent 3% of the total cellular fleet.
For the first five months of the year, 688,00 teu of new vessel capacity is due to be delivered and total deliveries in 2011 are expected to reach 1.35 million teu, based on Alphaliner’s figures, which are already adjusted for delivery deferrals.
Alphaliner said the high number of deliveries so far this year was partly due to deliveries being deferred in 2009 and 2010.
As funding issues have been resolved for the majority of these ships, further delivery delays are unlikely.
Alphaliner said: “A record level of new containership deliveries in the next few months is expected to add further downward pressure on freight rates and reverse the rise in charter rates.
“Cellular capacity growth this year is forecast at 8.6%, including provisions for scrapping.
“Hence, the demand-supply balance is gradually moving against the shipowners’ favour.
“Early indicators of 2011-demand growth raise worries and the weak growth in South China is of particular concern for carriers.
“These capacity additions are coming even as demand growth shows signs of slowing down – South China ports registered throughput growth of only 2.4% in the first three months of this year.”
Hong Kong, Shenzhen and Guangzhou recorded an aggregate volume growth of only 2.4% in the first quarter, a significant slowdown compared to the 23.7% growth at these ports in the same period of 2010.
