Maersk to Adjust Capacity When Triple-E's Enter Service

Press Release
Monday, March 18, 2013
CEO Søren Skou: Photo credit Maersk Line

Maersk Line intend to take measures to avoid a repetition of the ocean container shipping 'rate wars' of previous years.

With a capacity of 18,000 20-foot containers, the Triple-E will be the largest container ship ever built. Maersk acknowledges that the introduction of the new vessels comes at a challenging time, with weak demand putting strains on all carriers.

The Triple-E is built for the Asia-to-Europe (AE) service, Maersk Line’s most important trade lane. Volumes on that trade shrank by 5% in 2012, estimates industry analyst Alphaliner, and are expected to grow by only 1% in 2013.

Does that make the vessels a bad investment? “Not at all,” says CEO Søren Skou. "First of all, most of the ships will not be delivered until 2014, so with five Triple-Es joining the fleet this year the capacity injection in 2013 is quite minimal. As we introduce new and larger ships, if the market is not growing we will pull out other capacity to make the balance for us,” says Skou.

Maersk Line say they are monitoring demand closely and are ready to adjust capacity accordingly to avoid a repetition of the devastating rate wars of some of the previous years. There are a number of ways to do that, including returning chartered vessels to leasing partners, scrapping or recycling excess tonnage, idling parts of the fleet and further implementing slow steaming.

The plan is to phase in the Triple-E vessels on the AE10 service, which currently calls at 13 different ports between Asia and Northern Europe. “They will replace the 13,100 TEU charter tonnage vessels, which will be cascaded to other services,” says Chief Operating Officer Morten Engelstoft.

“We estimate that we will only increase capaci by about 1.5% in 2013, in line with our ambition of growing with the market.” The cascading exercise serves another purpose, as removing excess capacity also means that the least efficient and more polluting vessels are pulled out of the network.

 



 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Danish Maritime Days Themes Announced

Four themes at this year’s Danish Maritime Days will highlight some of the most important challenges and opportunities which the global maritime industry is facing, organizers said.

CMA CGM Proceeds with NOL Takeover after China Okay

CMA CGM, the world's third-largest container shipping firm, is to go ahead with its planned acquisition of Singapore's Neptune Orient Lines (NOL) after receiving regulatory clearance from China,

Singapore Exchange in Talks to buy Baltic Exchange

Baltic Exchange privately owned by 380 shareholders. The Singapore Exchange (SGX) is in exclusive talks to buy London's Baltic Exchange, which has been at the

Container Ships

SOLAS Container Weight Requirements FAQ

With new rules regarding the declaration of the accurate gross mass of a packed containers due to enter force, the International Maritime Organization (IMO) answers

CMA CGM Proceeds with NOL Takeover after China Okay

CMA CGM, the world's third-largest container shipping firm, is to go ahead with its planned acquisition of Singapore's Neptune Orient Lines (NOL) after receiving regulatory clearance from China,

Singapore Exchange in Talks to buy Baltic Exchange

Baltic Exchange privately owned by 380 shareholders. The Singapore Exchange (SGX) is in exclusive talks to buy London's Baltic Exchange, which has been at the

 
 
Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0992 sec (10 req/sec)