New threshold in containership delivery reached

Ocean cargo shippers will have access to more than a million twenty-foot equivalent units (TEUs), thanks to the continuing introduction of new vessel capacity
By Patrick Burnson, Executive Editor
October 18, 2011 - LM Editorial

Ocean cargo shippers will have access to more than a million twenty-foot equivalent units (TEUs), thanks to the continuing introduction of new vessel capacity.

According to the Paris-based consultancy, Alphaliner, this threshold was reached in mid-October, and represents the distribution of space among spread across 154 vessels.

Furthermore, said analysts, 0.28 million TEU is planned to be delivered over the next ten weeks, bringing the expected deliveries to 1.28 million TEU for the full year.

“Non-deliveries” due to cancellations, deferrals and slippage have fallen to 8.5n percent – i.e. only twice their long-term historical levels – as the bulk of the delivery deferrals was negotiated in 2009 and 2010.

“These deferrals were integrated within our delivery forecast in real time,” said Stephen Fletcher, Alphaliner’s commercial director. “Some market sources, which predicted earlier this year that the non-delivery
rate for 2011 could be as high as 45 percent of the scheduled vessel deliveries, reckoned erroneously that deferrals and delays for 2011 would repeat the figures recorded for 2009 and 2010.”

As it turned out, 2009 and 2010 were exceptional years as the financial crisis led owners and carriers to defer the deliveries of a significant part of the orderbook, as well as to cancel part of their orders. Such crisis-driven initiatives, said analysts, were not to be repeated in 2011.

Cancellations have actually been marginal this year, with no impact on the deliveries scheduled for 2011. Actual deferrals and slippage are expected to reach some 120,000 TEU, or only 8.5 percent of the expected deliveries this year, based on the Alphaliner database, which is updated in real time to incorporate the latest delivery schedules.

“Almost half the figure can be attributed to the chronic slippage that occurs even in bullish times, mostly caused by non-performing shipyards or technical issues,” said Fletcher. “Another part can be attributed to the difficulties that some owners continue to face in their quest to gather the necessary funds to pay the final installments on their newbuildings contracts.”



About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Intermodal units, at 278,767 containers and trailers were up 6.7 percent compared to the same week last year and marks the third best week for intermodal ever recorded based on AAR’s data.

LM Group News Editor Jeff Berman recently conducted a wide-ranging interview with Bobby Harris, President and CEO of non asset-based 3PL BlueGrace Logistics about various aspects of the freight transportation market.

It’s small, but senior brass at YRC Worldwide will take it. After nearly seven years of continuing losses in excess of $2.6 billion, the parent of the nation’s second-largest LTL carrier posted a narrow net profit in the third quarter ended Sept. 30.

As was the case for the second quarter, third quarter earnings results for publicly-traded less-than-truckload (LTL) carriers are again strong. Signs of solid earnings results from carriers that have posted earnings to date include tonnage increases, gains in weight per shipment and average daily shipments, higher yield, and revenue per hundredweight.

While the holiday season is known to bring good tidings and cheer to all, it may also come with another thing that is not so pleasant: higher rate freights. That was the thesis of a commentary written by Mark Montague, industry pricing analyst and chief market-watcher for DAT, a Portland, Ore.-based subsidiary of TransCore.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA