Monday, July 29, 2013

Overcapacity remains a concern in shipping

Overcapacity remains a concern in shipping

BY SHARIDAN M ALI
SHARIDAN@THESTAR.COM.MY

PETALING JAYA: As the container shipping industry recuperates from a challenging market environment, concerns still abound over the looming overcapacity as more new vessels are expected to come on stream in the next two to three years.

CMA CGM group senior vice-president for Asia Europe lines Nicolas Sartini told StarBiz that the two main markets in the liner industry – Asia-Europe and Trans-Pacific trade – have entered their peak season.


“Volumes are strong, resulting in rate restoration programmes successfully being implemented. This situation should prevail until end-October.

“With the start of the peak season, the overcapacity does not appear to be a big concern for the time being. As usual, carriers would have to deal with this when the slack season begins. Then, it would make sense to suspend seasonal services and idle vessels on several trades,” he said.

Maersk Line chief trade and marketing officer Vincent Clerc said supply as of today was not significantly out of sync with demand.

“However, the industry would phase in a 69% increase in the fleet of vessels above 10,000 20-ft equivalent units (TEUs) over the next two to three years.

“This would not be matched with a corresponding increase in demand and thus, new deployment opportunities would have to be created for these vessels, or the vessels that would be made obsolete by their deployment,” he said.

He added that this would put pressure on infrastructure to build facilities that could accommodate bigger vessels, and on the lines to co-operate to create cargo flows that could support them.

“Smaller vessels would be made obsolete prematurely because their operating cost would simply not be competitive anymore,” he said.

On freight rates, Sartini said the rates, especially on the Asia-Europe trade, had dipped to unnecessary low levels.

“No one benefits from the instability in freight rates which is prevailing – the carriers need to achieve decent returns to continue to invest on vessels and containers

“And the customers are looking for stable freight rates to get visibility on costs in their supply chain,” he said.

Nevertheless, the big boys –Maersk, CMA CGM – and another liner company, MSC Mediterranean Shipping Company SA, have recently agreed to establish a long-term operational alliance on East-West trade, called the P3 network, with the aim of improving and optimising operations and service offerings.

The P3 network will operate a capacity of 2.6 million TEUs, with an initial 255 vessels on 29 loops to be deployed in three main trade lanes – Asia-Europe, Trans-Pacific and Trans-Atlantic.

The network is expected to provide customers with more stable, frequent and flexible services.

“Declining volume growth and overcapacity in recent years have underlined the need to improve operations and efficiency in the industry.

“This has prompted the creation of other operational alliances such as G6 and CKYH. Using the P3 network, the lines expect to be able to improve their efficiency via better utilisation of vessel capacity,” said CMA CGM in a statement last month.

Sartini said the P3 network had a stronger share on the Asia-Europe trade than on the Trans-Pacific.

“Overall, these markets remain highly competitive and fragmented. There are more than 20 active players in each trade,” he said.

The lines intend to start operations in the second quarter of next year, but it will be subject to obtaining the approval of relevant competition and other regulatory authorities.


Source/Extract/Excerpts/来源/转贴/摘录: .thestar.com.my
Publish date: 29/07/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock