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.

 



 


People & Company News

MN100: Guido Perla & Associates, Inc.

The Company: With offices in the US, Brazil, Chile, China and Germany, GPA developed into an independent, full-service naval architecture and marine engineering

Grand Bahama Shipyard Expands Sales Team

Grand Bahama Shipyard Limited (GBSL) has added three regional sales directors to its Marketing and Sales Division, with posts in the Americas, Europe and Asia/Middle East.

MN100: Kohler Marine

The Company: Kohler Marine generators are produced in the United States and distributed globally. Kohler Marine sales as well as aftermarket sales and service activities are globally organized.

Container Ships

Pivotal LNG, Carib Energy Reach Multi-Year Supply Deal

Pivotal LNG announced a multi-year agreement to sell liquefied natural gas (LNG) to Carib Energy LLC, a Crowley Maritime Corp. subsidiary. Crowley will transport and deliver LNG from the U.

Hyundai Merchant Marine to buy Hanjin's 'Good' Assets

South Korea's financial regulator said on Wednesday that Hyundai Merchant Marine Co Ltd will seek to acquire healthy assets of troubled shipper Hanjin Shipping Co Ltd.

APM Terminals to invest $70 mln in Port Elizabeth Terminal

The Port of New York and New Jersey is the largest port on the US East Coast and third largest in the United States with 6.37 million TEU handled in 2015.  In 2014,

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Salvage 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: 0.0991 sec (10 req/sec)