Large Newbuilds Cause 'Cascading'

Source:Asiasis
2013.08.01
1109

For the past one year, a large amount of containership newbuilds were delivered focused on ultra large containership, of which units above the range of 10,000 teu accounted for around 35% share of total.
According to global shipping analyst Alphaliner, around new boxships of a combined 1,275,000 teu were tallied to have been delivered for the last 12 months from July, 2012, to June, 2013. Of which, around the half amount, or 622,000 teu newbuilds were added on the Far East (FE)-Europe route.
On the FE-Europe route, stagnant demand triggered re-assigning smaller units which capacity is similar to influx of new large units to other routes from their trade, leading to cascading across multiple trades.
In terms of growth rate of fleet capacity by trade, aggregating both new deliveries and cascade In/Out, FE-North America trade increased by 12% from the same time last year to 321,000 teu, of which 131,000 teu were newbuilds in the range of 3,500~9,200 teu while the other 190,000 teu were newly added from FE-Europe, driven by cascading.  
Particularly, the Oceania and Africa related trades saw the largest capacity growth with 15.1% and 14.5%, each, with 89,000 teu capacity added on the Oceania trades and 185,000 teu added on the African trades.

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