Where will the freighters go as capacity shifts from tariff-hit China-US lane?
Cargo airlines are scrabbling to find new markets as capacity becomes available following the end ...
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By Mike Wackett
Reports that Japanese carrier NYK has opened negotiations with shipyards for an order of ten 14,000teu ships is further evidence of the potential threat of the P3 network to rival alliances and their member lines.
Indeed, after the success of P3 member Maersk Line in reducing its unit cost rate by a further $390 per feu in Q3, year-on-year, the AP Møller Maersk group’s CEO whetted the appetite of investors by promising that the P3, if approved, would deliver even more ...
Comment on this article
David Chapman
November 23, 2013 at 10:20 pmThe trade is still vastly over tonnaged and it will take a considerable reduction in the number of carriers on all trades to make shipping profitable again, notwithstanding Maersk’s results. Next year will be very interesting for the industry if freight volumes do not pick up and the signs are that it will not improve in the near future.
Mike Wackett
November 28, 2013 at 10:56 amDavid,
I share your concerns about 2014 especially if demand does not spike before CNY.
Then everybody looses – the carriers of course; but also shippers who lose their options and reliability.
Narasimhan Sundapalayam
November 30, 2013 at 8:18 amMike,
I am inclined to agree with you counter comment.
A lurking suspicion haunting me is that the game being played by Maersk is deeper. Currently, most of the smaller fries have virtually been eliminated or are in the process of elimination with the introduction of Mega(12,000+)and VLCCS(18000’S).
Since P3 talks of even 19,000+ and the major share in P3 would appear to be Maersk’s, the strategy perhaps will be to eliminate the lesser competitors like G6.
Then they become the uncrowned Monarch of all the major trade lanes with the smaller fries being relegated to be their feeder links.
Of course, the “demand” side and the shifting trading pattern predominantly favouring the Intra-Asia and emerging markets will definitely have a say in this.