Economies of scale from 16,000+ TEUer ships will compel mega order rush
SIZE does matter when it comes to containerships, with Drewry Maritime Research predicting a coming rush to order more vessels in excess of 16,000 TEU to serve the Asia-Europe route.
This is despite such mammoth containerships being too large to pass through the Panama Canal even after its expansion is complete in mid-2015.
By way of explaining the appeal of such vessels, a report by Drewry says the economies of scale offered by the world's largest containerships, Maersk Line's Triple-E class ships that have a carrying capacity of 18,000 TEU, are so great that few can ignore them.
It said assuming the Triple-E's consume 164 tonnes of fuel a day (excluding diesel), the estimated bunker cost of the Maersk Mc-Kinney Moller would be 35 per cent lower than a typical 13,100-TEU ship on a per TEU basis, that is $218 per TEU versus $333/TEU.
The unit cost comparison is based on an average westbound ship speed of 20 knots for both sizes of vessel, and an eastbound ship speed of 14.6 knots, which is the average speed of Maersk Line's Asia-Europe services. The ships are also assumed to be 85 per cent full westbound, and 55 per cent full eastbound, which may only be achieved when all of the vessels deployed in the AE10 service are Triple-Es.
Ship operating cost, including manning, insurance, stores/lubes, repair, maintenance and administration, is 11 per cent cheaper - $76/TEU versus $85/TEU - when compared to ships in the 3,000 to 12,000 TEU range based on 2011 costs.
The Maersk McKinney Moller is manned with a crew of 21, but it is possible to operate her with just 13 crew.
Putting both bunker and ship operating cost savings together shows that Maersk's 18,000-TEU ships are 30 per cent cheaper than 13,100 TEUers deployed on a round trip - $294/TEU carried versus $418/TEU carried. This does not include Suez Canal and port costs.
Other savings include faster cargo handling. According to APM Terminals, berth and crane productivity of the Maersk Mc-Kinney Moller last week beat the record in Rotterdam.
Owing to its larger size, up to eight cranes could be worked on an 18,000 TEU vessel, whereas only six can usually be worked on a 14,000 TEU ship.
SIZE does matter when it comes to containerships, with Drewry Maritime Research predicting a coming rush to order more vessels in excess of 16,000 TEU to serve the Asia-Europe route.
This is despite such mammoth containerships being too large to pass through the Panama Canal even after its expansion is complete in mid-2015.
By way of explaining the appeal of such vessels, a report by Drewry says the economies of scale offered by the world's largest containerships, Maersk Line's Triple-E class ships that have a carrying capacity of 18,000 TEU, are so great that few can ignore them.
It said assuming the Triple-E's consume 164 tonnes of fuel a day (excluding diesel), the estimated bunker cost of the Maersk Mc-Kinney Moller would be 35 per cent lower than a typical 13,100-TEU ship on a per TEU basis, that is $218 per TEU versus $333/TEU.
The unit cost comparison is based on an average westbound ship speed of 20 knots for both sizes of vessel, and an eastbound ship speed of 14.6 knots, which is the average speed of Maersk Line's Asia-Europe services. The ships are also assumed to be 85 per cent full westbound, and 55 per cent full eastbound, which may only be achieved when all of the vessels deployed in the AE10 service are Triple-Es.
Ship operating cost, including manning, insurance, stores/lubes, repair, maintenance and administration, is 11 per cent cheaper - $76/TEU versus $85/TEU - when compared to ships in the 3,000 to 12,000 TEU range based on 2011 costs.
The Maersk McKinney Moller is manned with a crew of 21, but it is possible to operate her with just 13 crew.
Putting both bunker and ship operating cost savings together shows that Maersk's 18,000-TEU ships are 30 per cent cheaper than 13,100 TEUers deployed on a round trip - $294/TEU carried versus $418/TEU carried. This does not include Suez Canal and port costs.
Other savings include faster cargo handling. According to APM Terminals, berth and crane productivity of the Maersk Mc-Kinney Moller last week beat the record in Rotterdam.
Owing to its larger size, up to eight cranes could be worked on an 18,000 TEU vessel, whereas only six can usually be worked on a 14,000 TEU ship.