By Kyunghee Park (Bloomberg) -- The hulking container ships that transport sneakers, bananas and Barbie dolls around the world keep getting bigger. So are the companies that own them. A massive consolidation is underway in the $500 billion global industry and the survivors now enjoy big economies of scale and increased demand, one year after excess capacity caused … [Read more...]
Tradelane Rivalry May Scupper South Korean Shipping Alliance
By Mike Wackett (The Loadstar) Yesterday’s partnership agreement between 14 South Korean shipping lines falls far short of the consolidation needed to bring them significant benefits, according to Alphaliner. The Korean Shipping Partnership (KSP) was announced by the Korea Shipowners’ Association (KSA) and is supported by the Ministry of Maritime Affairs and … [Read more...]
South Korean Shipping Lines Form Alliance
South Korea's 14 domestic shipping lines launched a shipping alliance as predicted on Tuesday. The Korean Shipping Partnership (KSP) was announced by the Korea Shipowners’ Association (KSA) with support from South Korea's Ministry of Maritime Affairs and Fisheries. The KSP alliance includes all 14 shipping container carriers in South Korea, including Hyundai Merchant … [Read more...]
Report: South Korea’s Shipping Lines to Form Alliance
South Korea's shipping companies are preparing to launch a domestic shipping alliance to help the nation better compete in the global container shipping industry in the wake of Hanjin's collapse, according to local media. The move comes amid continued consolidation in the industry and less than one year after the collapse of Hanjin Shipping Co., once South Korea's … [Read more...]
CMA CGM Ship Order Could Send Ripples Across Tradelanes as Rates Strengthen
By Mike Wackett (The Loadstar) - CMA CGM’s potential order of up to nine 22,000 teu ultra-large container vessels (ULCVs) is sending a message to the liner industry that the freight rate war that led to the bankruptcy of Hanjin Shipping is far from over. Based on early reactions to the order news, shippers expect container lines to return to their old ways and lose … [Read more...]
Insurers Grow Anxious as Containerships Get Bigger and Cargo More Valuable
By Mike Wackett (The Loadstar) - With CMA CGM reportedly ready to sign a letter-of-intent for nine ultra-large container vessels (ULCVs) of 22,000 teu, insurers are becoming increasingly concerned that their exposure may be too concentrated. At a conference in Seoul, South Korea, this week, shipbuilder Hyundai Heavy Industries (HHI) revealed it was in competition with a … [Read more...]
Overcapacity Returns to Haunt Liner Shipping as Newbuilds Queue Up
By Mike Wackett (The Loadstar) - The spectre of overcapacity is clouding recent analyst optimism that ocean carriers could be heading for a period of sustained profitability. During the first six months of this year, 26 newbuild ships of 14,000 teu-plus have been delivered – many of which will have been deployed between Asia and Europe, and according to Alphaliner, at least … [Read more...]