Equipment Shift Understates Demand in Box Trades
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

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

People & Company News

USCG: Body Found in Search for Ship Sunk in Hurricane

The U.S. Coast Guard on Monday said its crews had found a body and an empty, heavily damaged lifeboat in their search for the cargo ship El Faro, believed to have

Kalmar to Upgrade MSC Terminal VLC (Valencia) Cranes

Kalmar, part of Cargotec, has announced a large contract to heighten and extend the handling capabilities of eight ship-to-shore (STS) cranes at MSC Terminal VLC in Valencia, Spain.

Wärtsilä Debuts Package for hydropower & industrial plant

Wärtsilä Corporation, a global leader in complete lifecycle power solutions for the marine and energy markets, expands into a new market segment, offering a comprehensive package of seals,


Baltic Index Slips as Demand Falls

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell on Monday as demand dropped across all vessel categories.

USCG: Body Found in Search for Ship Sunk in Hurricane

The U.S. Coast Guard on Monday said its crews had found a body and an empty, heavily damaged lifeboat in their search for the cargo ship El Faro, believed to have

Hunt for Missing El Faro Ship Enters 4th day, Hopes Fade

Search and rescue teams resumed scouring the seas on Monday for the missing cargo ship El Faro and it mostly American crew, after it was caught in the eye of Hurricane Joaquin four days ago, the U.

Marine Equipment

Rolls-Royce to Cut More Staff of Marine Unit

Britain's Rolls-Royce said it would cut an additional 400 staff from its marine business by the end of next year, its latest move to make the unit more efficient

Incat Ferry Order from Denmark

Incat Tasmania Pty Ltd, Australian shipbuilder, has secured a contract for the construction, delivery and long term charter of a large fast vehicle ferry for Danish company Mols-Linien A/S.

Debris Appears to Belong to Cargo Ship Missing in Bahamas

Search and rescue teams on Sunday located debris which appeared to belong to the cargo ship El Faro that went missing in the eye of Hurricane Joaquin with 33 mostly American crew members aboard,

Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction 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: 0.1862 sec (5 req/sec)