THE containership shipping market's buying spree over the past decade of super mega box ships has dramatically tipped the supply-demand balance, with freight rates struggling to gain any momentum that sticks.
With the vessel order book now heavily skewed towards the largest sizes, analysts at Clarkson Research Services are asking what are the current trends for the ordering of smaller ships.
The situation was "reasonably balanced" from 2003-06 split between the amount of capacity ordered in the sub-3,000 TEU sector, the 3-7,999 TEU size range, and on ships of 8,000+ TEU, with substantial contracting across all sectors.
Then in 2007 contracting of 12,000+ TEU ships took off, and an annual record of 3.2 million TEU was ordered, 65 per cent of which on ships of 8,000+ TEU.
However, from the fourth quarter of 2008 until the end of the second quarter of 2010, in the depths of the financial crisis, contracting was very subdued, averaging 20,000 TEU a quarter. Just 43 box ships were ordered in 21 months.
Newbuilding interest returned in the second half of 2010, and in 2011 ordering reached 1.8 million TEU, with 12,000+ TEU ships accounting for 44 per cent of capacity ordered.
Investment in the smaller sizes was hit by the absence of traditional German owners from the market in the wake of the KG finance system collapse.
Last year two million TEU were ordered, the highest level since 2007, with 12,000+ TEU ships accounting for 41 per cent and 8-11,999 ships a further 46 per cent.
So far in 2014, 36 ships of 8,000+ TEU have been ordered. Although there have been no orders for ships of 3-7,999 TEU, contracts have been placed for 35 sub-3,000 TEU vessels.
The share of contracts accounted for by sub-3,000 TEU ships has risen to 49 per cent, of which, if maintained through the year, would be the highest proportion since 2006.
The analysts conclude that the pace of ordering in the smaller sizes although, slightly faster than last year, may well be seeing a shift in the balance of investment.
MARKETS
25 June 2014 - 08:34
Ten years of monolithic containerships ordering unbalances market
THE containership shipping market's buying spree over the past decade of super mega box ships has dramatically tipped the supply-demand balance, with freight rates struggling to gain any momentum that sticks.
MARKETS
25 June 2014 - 08:34
Ten years of monolithic containerships ordering unbalances market
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