Global containership capacity increases, but demand remains low

CONTAINERSHIP capacity over the last 12 months has risen 10 per cent, but demand has failed to match supply as a lacklustre peak season gets underway, according to a survey by Paris-based Alphaliner.

The main trade lanes registered modest second-quarter capacity utilisation levels of below 90 per cent and are expected to increase slightly in August despite the recent capacity withdrawals.


Recent capacity withdrawals on the Far East-Europe and transpacific routes have mostly resulted in the re-deployment of tonnage to secondary trade lanes, said the maritime consultancy`s weekly report.


As a result, African routes have seen the largest capacity increase of more than 20 per cent during the 12-month period, followed by the transatlantic and Latin American related routes which posted capacity increases in the 13-14 per cent range.


Far East-Europe routes remain under pressure with a 12 per cent year-on-year increase in capacity and 430,000 TEU afloat than in the corresponding period in 2010.


Additional capacity on this trade accounts for a third of the total increase, said Alphaliner, adding that the very large and ultra large containerships delivered over the last year have been deployed to the Far East-Europe trade, despite average utilisation levels of only 84 per cent in the first half of 2011.