Maersk Line Tops the Idlers League Table

Press Release
Thursday, November 15, 2012
Idle Maersk Container Ships: Image credit Maersk Line

Among container Carriers, Maersk Line currently has the largest number of vessels idle.

A report by shipping analyst Alphaliner (Vol. 2012, Issue 46) reveals Maersk Line as the carrier with most vessels idled, currently 14 units with an aggregate capacity of 94,000 TEU.

This development spearheads a recent surge in idling across the industry. “The idle containership fleet of above 500 TEU have swelled by 96,000 TEU in the last fortnight to reach 762,000 TEU or 4.7% of the current cellular fleet as at 5 November,” states the newsletter.

“24 units of above 5,000 TEU are currently idle,” says Alphaliner, “compared to only two such units in early September.” The share of idle fleet for shipping companies has increased to 35%, compared to only 15% in September, states the report.

Erik Rabjerg Nielsen, Maersk Line’s Head of Scheduling and Deployment, explains that “the primary reason for the latest surge in idling is the removal of the AE9 service from the Far East to Europe, currently on hold until at least the end of November. 10 vessels have been pushed out from here.”

“We are continuously managing our capacity to meet market demands,” he says. “Especially on Asia-Europe we are adjusting down to ensure that we have a cost-efficient network which enables us to serve our customers in a competitive manner.”

This echoes comments made by A.P. Moller - Maersk Group CEO Niels Smedegard Andersen in connection with the third quarter financial results.

“If you can’t fill your vessels, of couse it is better to reduce your capacity. At least you save the cost. It is much better than going out in rate decreases,” he said on 9 November. “We have pulled quite a bit of market capacity out, so we definitely feel that we have done our share, having seen good results from it and now we expect others to behave responsibly as well.”

In the toolbox for capacity management are several options for handling redundant vessels, Erik explains. “We can keep them om standby if we want to be able to deploy them again quickly. We can return leased vessels to their owners; we have done this for 71 vessels during the last few months. We can re-let them to other carriers who have needs for them. And finally we can idle vessels, realising substantial cost savings on daily running expenses.”




Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Bangladesh Aims to be World's 'First Solar Nation

Residents of Islampur, a remote village in the northern Bangladeshi district of Naogaon, were stunned one night last summer when the darkness was suddenly illuminated

India Not Pressurized by US-China Deal

Indian Prime Minister Narendra Modi said a climate deal between the United States and China does not put pressure on India, but that global warming itself was reason to take action.

U.S., India to Seal Nuclear Deal

The United States and India have reached a breakthrough on two issues holding up civil nuclear cooperation between them, U.S. President Barack Obama told a news conference in New Delhi on Sunday.

Container Ships

FMC Commissioners Meet with China Transport Officials

Federal Maritime Commissioners Richard A. Lidinsky, Jr. and William P. Doyle met with transportation officials from China on January 14, 2015 in Washington, D.C.

Maersk Chief Warns on Global Trade

Nils Andersen,  chief executive  of AP Møller-Maersks, has warned that global trade will never return to scorching pre-crisis growth rates, in part because western

Indian Shipping Ministry Seeks Tax Sops

India's shipping ministry is asking for a tax holiday and more incentives for the shipbuilding industry in the upcoming Union budget, according to a report in the Economic Times.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Pipelines Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1506 sec (7 req/sec)