Are carriers heading for capacity overload?

JOY ORLEK THE RECENT launch of the biggest ever container ship, the Emma Maersk, adds 11 000 TEUs to the number of cellular slots entering service this year and begs the question being asked by many industry observers – can the industry absorb the huge amount of additional capacity? It’s an issue raised by editorial director of Containerisation International, John Fossey, in his Containerisation International Yearbook 2006 review. “The biggest concern without a doubt is the bulge in new tonnage deliveries over the next two years, with 1.2 million TEUs of cellular slots scheduled to enter service in 2006 and another 1.4 million coming on stream in 2007. “By the end of 2009, an additional 4.4 million TEUs could be trading, equivalent to almost 56% of the current fleet,” says Fossey. “This is a record order book and, in anybody’s estimation, it is a huge amount of capacity for the industry to absorb.” One of the industry’s premier reference books, Containerisation International Yearbook is a goldmine of information on the shipping industry, providing authoritative data on worldwide ports and terminals, shipping services, equipment, leasing and repair companies, brokers and the like. Published by Informa UK, the 900-page tome is available at a cost of £335. For further details email ci.subscriptions@informa.com.