Equipment Shift Understates Demand in Box Trades

MarineLink.com
Tuesday, October 22, 2013

Demand for 40ft high-cube containers continues to grow, creating stowage problems for ocean problems for carriers and entities requiring an accurate assessment of demand, according to Drewry.
 

This week’s Container Insight Weekly from Drewry highlights the growing share of 40ft high-cube (9ft 6in high) containers in the global maritime container fleet and how the phenomenon is causing problems for carriers and forecasters alike.


The popularity of 40ft HCs is easy to understand. Being around 13% larger than ordinary 40ft boxes, shippers can load that amount of extra cargo at little to no extra freight cost. Moreover, inland transport is usually charged on a per container basis for light cargo, so there are no extra haulage costs too.


Matthew Beddow, manager of Drewry’s Container Insight Weekly, said the growing popularity of the 40ft HCs has two significant implications.


“The first is that the increasing need to stow 9ft 6in containers below deck, which results in loss of cargo space for shipping lines, is reaching a critical junction,” said Beddow.


“Whereas nearly all the equipment has been stowed on deck so far, particularly reefers, this cannot continue much longer, bearing in mind that just over 50% of a ship’s cellular capacity is located on deck. When under-deck stowage is required, as much as 7ft (2.1m) can be lost between the top of the last tier of a stack and the main deck, as ship holds are usually designed for 8ft 6in boxes.


“The second message is that containerised cargo growth measured in teu has increasingly been underestimated over time. This is because a 40ft HC container usually only counts as two teu, the same as 2 x 20ft (8ft 6in) boxes, or  1 x 40ft (8ft 6in) container, even though it is approximately 13% bigger.”


Therefore, in a major tradelane like the eastbound transpacific, where 40ft equipment is the norm due to light average cargo weights, although year-on-year growth in the first seven months of 2013 was only 1.856% measured in teu, it was over 2.2% measured in ‘constant’ teu.


“The difference may not seem much, but it makes a big difference to economists trying to make sense of the changes between GDP growth and cargo growth. It is also cumulative, so gets bigger over longer periods of time,” said Beddow.


The full article is available at http://ciw.drewry.co.uk/features/high-cubes-a-growing-phenomenon

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Diamond Offshore Shares on the Rise

Diamond Offshore Drilling Inc, one of the world's top five offshore rig contractors, reported a better-than-expected quarterly profit as it cut drilling costs and hiked prices,

Italian Pleads Guilty to Marine-hose Price-fixing in US

A former executive of Parker ITR Srl pleaded guilty on Thursday to conspiring to rig bids for marine hose and was sentenced to two years in prison, the U.S. Justice Department said on Thursday.

Ecochlor Raises $10m for BWT Maket

Ecochlor, Inc. announced that it has completed a $10 million equity financing to support its growth into the burgeoning ballast water treatment market. Since its formation in 2001,

News

At Hamburg port E-mobility Project, BESIC enters crucial phase

Ten battery-operated heavy goods vehicles now transport containers between ships and the yard at the highly automated handling facility in the HHLA Container Terminal Altenwerder (CTA).

Life Rafts Not Functioning On Sunk Ferry's Sister Ship

South Korean investigators said on Friday that life rafts and escape chutes on a sister ship to a sunken ferry were not working properly. The Sewol ferry, weighing almost 7,

Historic Schooner Adventuress to Offer Tours at the Port of Everett

Historic Schooner AdventuressEverett, Wash. - National Historic  Landmark, the schooner Adventuress, will make its annual sail to visit the Port of Everett Marina April 26 - 29.

Marine Equipment

At Hamburg port E-mobility Project, BESIC enters crucial phase

Ten battery-operated heavy goods vehicles now transport containers between ships and the yard at the highly automated handling facility in the HHLA Container Terminal Altenwerder (CTA).

Life Rafts Not Functioning On Sunk Ferry's Sister Ship

South Korean investigators said on Friday that life rafts and escape chutes on a sister ship to a sunken ferry were not working properly. The Sewol ferry, weighing almost 7,

Historic Schooner Adventuress to Offer Tours at the Port of Everett

Historic Schooner AdventuressEverett, Wash. - National Historic  Landmark, the schooner Adventuress, will make its annual sail to visit the Port of Everett Marina April 26 - 29.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Sonar
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: 0.1731 sec (6 req/sec)