Peak season, slow steaming, drives bigger ship demand

BIGGER ships are again in demand as the peak season revs up and slow steaming absorbs tonnage, according to Paris-based Alphaliner, whose analysts say idle ships of 5,000 TEU or more are finding work with new loops starting up and old ones are resuming as the recession begins to fade away.

The number of unemployed large containerships is expected to fall to below 20 units by June, down from a peak of 82 idle units in March 2009, according to Alphaliner records.

"The increased demand is expected to absorb all the large newbuildings coming on stream during the first half of this year. However, with more than 100 new ships of over 5,000 TEU scheduled for delivery in 2010, the idle capacity could rise again at the end of the peak season," said the Alphaliner weekly newsletter.

Twenty ships of more than 5,000 TEU have been delivered since January 1 and all have work. Big ships are the gainers from slow steaming too. "Extra slow steaming (ESS) has absorbed more than 50 ships of over 5,000 TEU. Currently, all of the 28 Far East-North Europe strings have adopted slower sailing speeds," said the report.

"Of these 28 services, 25 are using vessels of over 5,000 TEU. A further11 Far East-Mediterranean and 17 Far East-US services are also employing additionalvessels of over 5,000 TEU due to slow steaming," it said.

(Source: www.Schednet.net)