Disclaimer

The articles excerpted on this site report on the state of the industry as seen by mainstream media, and do not necessarily reflect the opinion of the officers of the ILWU Coast Longshore Division.

Another big box ship order raises over capacity worries

From Marine Log:

Analysts are worried that the container shipping industry is about to build itself a whole new lot of overcapacity.

South Korea’s Daewoo Shipbuilding & Marine Engineering Co. said in a regulatory filing today that it has clinched a 927 billion won (US$818 million) deal to build five container vessels for delivery by […]

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Hanjin Shipping’s bankruptcy backfires on Korean shipbuilders

Global shipping giants reportedly are reluctant to place orders and are postponing the delivery of completed container ships because vessels that were chartered by the nation’s once-largest shipping line have been released into the market at lower prices.

According to industry sources on Sunday, the world’s largest shipping line, Maersk Line, placed a $1.1 billion […]

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Advice to box ship owners: Defer newbuild deliveries

Table by Drewry

From Marine Log:

The latest Container Insight Weekly from Drewry Shipping Consultants Ltd. says that newbuilding deferral offers the container industry a golden opportunity to smooth out the capacity peaks in the coming years.

Drewry points to the dire state of the shipbuilding industry where “nobody is ordering vessels, of any […]

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Maersk Line defers delivery of new container ships to prop up cashflow

From The Loadstar:

Maersk Line is to postpone delivery of nine newbuild 14,000 teu ‘utility’ ships with the last vessel to be received at the end of 2018, instead of at the end of this year.

Maersk Line says it does not need the ships as it is able to charter vessels of this […]

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Container shipping costs skyrocket after Hanjin collapse

From Hellenic Shipping News:

Container shipping costs, which radically plunged, now shows signs of recovery after the fall of Hanjin Shpiping Co. The strategy of Maersk Line, the world’s largest shipping group which cuts down shipping fees until its competitors fall down and pick fruit when they are liquidated, seems to be working. As […]

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Alliances, megaships, capacity to strain ports in 2017

Excerpts from an article titled ‘New alliances, bigger ships put US ports on high alert’ in the Journal of Commerce:

US ports are facing what could be a historically challenging 2017 as changes in the rapidly evolving steamship industry — among them new alliances, consolidation, and escalating ship capacity — heighten the already vigorous competition […]

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Number of idle container ships doubles in a year

The number of “idle ships” – ships not used for commercial operations – has increased from 238 vessels (with a combined capacity of about 900,000 TEU) in November last year to 435 ships (aggregating 1.7 million TEU) in early November of this year, according to Drewry.

Parked in various harbors around the world and awaiting […]

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Idle container ship fleet retreats from record high

From the Journal of Commerce:

The idle container ship fleet has retreated from a recent record high on accelerated scrapping of older tonnage and revived chartering of smaller ships, Alphaliner says.

As of Nov. 14, there were 363 unemployed ships of more than 500 twenty-foot-equivalent units with an aggregate capacity of 1.49 million TEUs, equivalent […]

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Maersk may target Hanjin, Hyundai in new acquisition plan

From Bloomberg:

A.P. Moeller-Maersk A/S’s container line, which this month ditched a strategy of building new vessels and will instead try to grow through acquisitions, is targeting South Korea’s two biggest shipping firms, according to Jefferies International Ltd.

Hanjin Shipping Co. last month filed for bankruptcy protection and Hyundai Merchant Marine Co. is in the […]

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Hanjin bankruptcy disrupts shipping at L.A., Long Beach ports

LA Times reports that Hanjin, ”like other large shipping lines, has struggled with overcapacity brought on by a massive ship building boom and sluggish demand.”

From the Los Angeles Times:

Hanjin Shipping Co. vessels are languishing off the ports of Los Angeles and Long Beach, delaying the delivery of goods following a bankruptcy filing […]

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South Korea’s Hanjin Shipping becomes symbol of industry in trouble

Excerpts from Bloomberg:

Hanjin assist

Hanjin Shipping Co. is hardly a bellwether in the world of container movers. As lenders halt all support this week, the South Korean company is now emerging as a symbol of the slump that has plagued the industry since the global financial crisis.

Creditors led by Korea Development Bank will […]

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Idle box ship fleet edges higher

The number of idled container vessels over 500 twenty-foot equivalent units edged slightly higher in the first two weeks of the year and is set to increase as carriers axe sailings in the run-up to the Chinese New Year holiday, according to Alphaliner.

There were 337 unemployed ships as of Jan. 11, up from 331 […]

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Santa’s sleighs lie idle: Alphaliner warns of Xmas record for unemployed boxships

The number of 500+ teu containerships idled will hit a record high by the end of the year, according to French analysts Alphaliner.

A total of 329 ships equivalent to 1.4m teu – equivalent to 7% of the global fleet – were laid up by the end of November, up by 23 ships from a […]

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Analysis: Is shipping in double dip danger?

Drewry Maritime Research asks: will carriers repeat the same tactics that saved them in 2009, or will they wait until things reach boiling point, as the risk of a double dip recession rears its head?

Today’s market does share some similarities to the 2009 crisis: carrier staff redundancies, ultra-low freight rates and the rapid increase […]

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Container shipping on the cusp of a major shakeup

Plagued by overcapacity and ongoing losses, the container shipping industry is rife with talk of potential mergers and acquisitions. The consolidation of the highly fragmented industry is long overdue, especially when contrasted with such other heavily capitalized transportation sectors as railroads and airlines.

The possibility that a new wave of M&A may be imminent was […]

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