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            october 17, 2019

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Carriers continue to add new capacity


New vessel deliveries and the re-activation of idle tonnage have added 2.24 million TEU to the active global fleet since the beginning of the year, an increase of 19 per cent compared to the same period last year, the Shipping Gazette reports. 
"The rapid increase in capacity deployed has finally started to have an impact on container freight levels, with average rates out of China sliding by six per cent in the last two months," said the Paris-based Alphaliner agency.
Carriers continue to add new capacity, with several new services to be launched in September, including two new transpacific and two transatlantic services.
"Further rate declines are expected until the end of the year, with the benchmark Far East-Europe forward swap rates expected to fall a further eight per cent by early next year," predicts Alphaliner.
"All the main carriers have added new capacity this year, with the sole exception of NYK which has reduced its active capacity by four per cent during the last eight months. The largest increase in TEU terms was recorded by MSC, with 282,000 TEU added to its operated fleet, a 19 per cent growth during the period.
"MSC is expected to receive up to 13 vessels of the 14,000 TEU class this year, of which eight have already been delivered," it said.
With 39 units in the 12,500-14,000 TEU range to be delivered in 2010-2012, MSC is expected to log the largest capacity increase among the carriers.
CSAV has also been aggressively expanding its operated capacity since January, with a capacity hike of 203,000 TEU. Measured in percentage terms, CSAV's 61 per cent increase recorded during the period has surpassed the growth rates of all other carriers.
"Box rates published by the Shanghai Shipping Exchange show reductions in most of the key line haul trade routes. Rates have fallen from their recent peaks in June and July, with the SCFI index currently at 1,486 points, down 6.1 per cent from its peak of 1,583 points in early July," said Alphaliner.
"Carriers' attempts to impose peak season surcharges in August have failed completely and further rate reductions are expected as the slack season approaches."

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