Near bankrupts redeemed as carriers add 14pc capacity in 2010

THE world largest container lines have increased their tonnage afloat by 14 per cent in the last year while others sailed from near bankruptcy to profitability, according to Paris-based Alphaliner.

Four carriers were on the brink of bankruptcy in 2009, CMA CGM, Hapag-Lloyd, CSAV and Zim, but all staged amazing comebacks and have continued to gain market share through capacity additions.

Hapag-Lloyd and CSAV have also taken the plunge and ordered additional containerships last month as these carriers appear set to continue their growth path in the next few years.

Only Japanese carriers shed capacity. NYK market share fell from 3.3 per cent in 2009 to only 2.6 per cent and cut its fleet from 424,000 TEU to 387,000 TEU. "K" Line lost market share from 2.4 per cent in 2009 to 2.2 per cent today. But MOL said it made a "rapid" recovery in its containership business with profits improving "sharply" driven by "the rapid recovery in container trade starting in the fall of 2009".

Alphaliner said that the robust recovery in freight volumes led carriers to take on new tonnage with the top 20 carriers having 12.3 million TEU in service against the 10.8 million TEU in service last January and 10.6 million TEU in January 2009.

The overall market share of the top 20 carriers has risen from 79 per cent to 83 per cent of the global container fleet, as the large carriers outpaced additions from rivals.

Total liner capacity grew by 8.6 per cent in 2010 to reach 14.8 million TEU as of January 1. Total cellular fleet stands at 4,849 ships for 14,270,000 TEU, up 9.1 per cent in nominal capacity terms compared to 12 months ago.

In the same period, the top 20 also cut layups from 740,000 TEU or 6.9 per cent of operational tonnage as at January 1 last year to 136,000 TEU, or 1.1 per cent today.

Eighteen of the 20 carriers increased their operational capacity, with only NYK and "K" Line posting a decline in the last year. Meanwhile, MSC gained the most by adding 375,000 TEU, an increase of 25 per cent.

The strongest gains were made by CSAV with a 74 per cent growth in the last 12 months from 333,000 TEU to 579,000 TEU. CSAV jumped from 13th to seventh place in the league tables as a result.

Maersk Line's front running position has been eroded by Mediterranean Shipping Company (MSC) and CMA CGM as its market share dropped from 18.2 per cent in September 2005 to 14.5 per cent today. MSC has increased its share from 8.2 per cent to 12.6 per cent during the same period, while third-place CMA CGM saw its market share climb from 4.9 per cent to 8.2 per cent.
(Source:www.schednet.com)