Hyundai Sees Mega Ships Leading Global Demand
As the demand for mega vessels has increased, Hyundai Heavy Industries Co. expects mega- sized container ships to lead global orders until early next year as shipping companies seek ways to cut costs, reports Bloomberg. Hyundai Heavy is the world’s biggest shipbuilder.
Ka Sam Hyun, a senior executive vice president in charge of ship sales at Hyundai Heavy said his company could win orders for as many as 11 vessels in July along with its unit its Hyundai Samho Heavy Industries Co.
Ka Sam said that the shipping lines won’t be able to survive if they can’t bring down their unit costs. Freight rates have recently fallen a lot, with rates to Europe from Asia at about a sixth of last year’s average. That’s why shipping lines want bigger ships, he said.
The average number of big vessels docking at ports globally has grown considerably over the last few years, and the trend is expected to continue in the years to come.
The growth in capacity, measured in TEU (Twenty foot Equivelent Units), has increased by 148.5 percent over the period of 1996 to 2013, says analysts. While the increase in length overall during this period was 45.5 percent and the beam grew by 49.7 percent. In fact, it is reported that delivery of the 22,000.
Shipping capacity is outpacing demand as larger vessels enter service and spending slows in Europe, where unemployment remains above 11 percent.
Maersk fired a shot across the bow of the container ship world in 2011 when they announced they had placed an order for an 18,500 TEU super-container ship; the world's largest non-bulk tanker vessel ever built. Currently they have two “Triple E's” in their fleet, with 17 more being built and in-service by June 2015.
