The extraordinarily busy container market has resulted in far fewer scrapped ships. The number of container vessels sold for scrapping has more than halved in the first six months of the year, writes Alphaliner.
Container carriers ordered newbuilds at an unprecedented rate in the first six months of the years, figures show. The purchase and sale of second-hand vessels also set a new record in an overheated market where carriers race to cash in on the sky-high freight rates.
Søren Toft, CEO of the world's second largest container carrier MSC, warns in the Financial Times that the EU's plan to reduce CO2 emissions in shipping will have the opposite effect and lead to greater harmful emissions.
From 2005 to 2019, the effective tax rate was only 7 percent in the shipping industry. Alphaliner expects that maritime organizations will work to ensure that tonnage tax systems are not affected by the consequences of the G7 countries' new proposal for a global corporation tax of 15 percent.
The period between late last year and into the new year has seen a massive increase in orders for large ships in the container industry, writes Alphaliner. High freight rates and strong earnings have led to more newbuild orders.
Maersk currently has the smallest orderbook of the world's top ten container lines. Meanwhile, Maersk has no new mega vessels on order, which, according to Alphaliner, indicates that shipping line has changed its strategy in terms of ordering newbuilds.
Container lines Cosco and CMA CGM have the highest capacities on the Transpacific routes between Asia and North America, and are also the ones benefiting the most from the high freight rates on these routes, writes analyst firm Alphaliner.
It is an expensive affair for the Suez Canal that several container vessels have started sailing around Africa, writes Alphaliner. The analyst firm estimates that it has already cost around USD 10 million.
Shipping companies with heightened leverage ratios and high short-term debt are particularly exposed in the current situation, where large amounts of container capacity are taken off the market during the corona crisis, writes Alphaliner.
The extension of the Chinese New Year due to the outbreak of coronavirus had major consequences for container volumes at Chinese ports, writes Alphaliner. The analyst firm expects negative growth for the year as a whole.
The many canceled sailings due to the corona outbreak have caused containers to strand in China, causing a shortage in Europe and the US. MSC's largest container vessels are being deployed to rectify the situation.
Measured in capacity, Maersk's market share is shrinking compared to its major competitors, writes Alphaliner, while both MSC and Cosco grew their shares in recent years. The trend is expected to continue for the container line, projects the firm.
Big container ships are starting to replace smaller container ships on the routes between Asia-Europe and Asia-North America. MSC's new 23,700-teu vessels are just the most recent example of a development that will continue, writes Alphaliner.
The largest container ships have driven fleet growth in the container industry for many years, and this trend is set to continue. Meanwhile, demand for smaller container vessels will continue to decline, estimates Alphaliner.