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Flood of Mega-ships May Alter Dynamics of Asia-Europe Trade, Drewry Says

(Bruce Barnard – JOC)

The Asia-North Europe trade faces a “huge” impact from the influx of more than 50 ultra-large container vessels over the next 15 months, matching that of the formation of new carrier alliances, according to Drewry shipping consultants.

The deployment of an estimated 54 new ships of at least 10,000 TEUs capacity through December 2015 may help carriers achieve much-needed lower slot costs, the London-based consultancy said.

But at the same time, this could alter the supply-demand dynamics, hitting spot freight rates, and affecting other trades as carriers “cascade” vessels from the Asia-Europe route and altering the competitive balance between the alliances themselves. Read more here.