Tuesday, March 10, 2009
Maersk Line to lay up as many as 25 boxships
Tony Gray - Monday 9 March 2009
AS MANY as 25 containerships could be taken out of service by Maersk Line as the market leader grapples with a collapse in demand at a time of fast rising capacity and impoverished freight rates.
Maersk could withdraw vessels with a combined capacity of about 150,000 teu — equivalent to more than 8% of its existing fleet.
The lay-up plans were disclosed by Maersk Line chief executive Eivind Kolding, who also said it was probable that all liner shipping companies would sustain losses in the current year.
Mr Kolding said the vessels being earmarked for lay-up this year would comprise “mid-size” containerships.
Vessels in this size range were considered to be between 4,300 teu-8,000 teu, said a Maersk Line spokesman, who also confirmed that the 25 vessels included the eight containerships condemned to lay-up in December.
The eight vessels Maersk decided to mothball in December, all of the CV 65 class, each had a capacity of 6,500 teu, or a total of 52,000 teu.
Assuming the average size of the additional vessels to be placed into lay-up is 6,000 teu, total capacity of about 154,000 teu could be removed from the market.
To put these measures into context, Maersk Line, part of the Danish shipping and energy giant AP Moller-Maersk, is the world’s largest containership operator with a global network at the end of last year comprising 464 vessels of 1.9m teu.
With up to 25 vessels totalling 154,000 teu potentially being banished to lay-up since December, this would represent about 5% of the operator’s existing fleet in terms of numbers and a little more than 8% in terms of capacity.
However, Maersk Line is also expecting to take delivery of nine containerships with a combined capacity of 33,200 teu in the current year, six more in 2010, and a further 32 containerships in 2011-2012.
The Maersk spokesman said it was premature to discuss which individual ships would be considered candidates for lay-up, as adjustments to the network could have the “domino effect” of releasing vessels for utilisation in other services where tonnage could then be withdrawn.
According to Lloyd’s Marine Intelligence Unit, 18 containerships with the prefix ‘Maersk’ have reported no movements for more than 19 days, which could, therefore, indicate they are inactive.
Maersk’s plans to mothball up to 25 containerships, albeit with eight already under way, is thought to involve the most significant statement of intent of this kind.
About 11% of the global boxship fleet — 453 ships or 1.4m teu — was designated inactive, if not in lay-up, at the beginning of March.
Meanwhile, Mr Kolding told Reuters it was likely that all liner shipping companies would be in the red this year.
“Most likely, some liner companies will have to cease business if freight rates do not come up,” he said.
“I have no idea who that will be, because we are all different, but it will not be Maersk.”
He echoed last week’s warning by Moller-Maersk group chief executive Nils Andersen that Maersk Line was determined to defend its market share, currently 15% worldwide and 17% on the Asia-Europe route.
“We would not like to see our market share go down,” Mr Kolding said.
“When we had huge growth in the market, of 10% or more, it was not necessary that we kept our market share each and every year if we had other priorities.
“But in this environment we will keep our market position.”
Although the Asia-Europe trade was the most competitive, he said it was also where “we are relatively strong and it’s definitely where we want to keep our position whatever it takes.”
Mr Kolding also indicated that Maersk was ready to expand should any of its competitors falter. “Our plans assume all our competitors will be there tomorrow, but if something happens we need to be ready to move in, take a bigger share of the business if the opportunity is there.”
0 comments:
Post a Comment