Blanked sailings in response to falling demand 'just a stop-gap solution'
Blanked sailings are only a “stop-gap solution” for carriers amid critical tonnage oversupply, according to ...
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By Mike Wackett
With Hyundai Merchant Marine (HMM) about to launch an Asia-North Europe service deploying panamax-size vessels, maritime consultant Drewry has debunked the theory that unit slot costs on bigger ships will always work out cheaper.
HMM surprised the industry with its pledge to offer a weekly loop to North Europe outside its slot charter agreement with 2M partners Maersk Line and MSC.
However, the sustainability of the South Korean carrier’s bold move has been questioned, given that it will only deploy panamax ships of ...
Comment on this article
Ingvar Bergman
March 26, 2018 at 2:49 pmFinally someone who make a customer friendly move and dare to act outside the scope of onkel John.*
With that many weekly departures FE/EU it has been a shame not to let some go faster which is possible with the powerful Panamaxis built 10-15 years ago. It will increase the bunker bill but should yield a premium rate. Good luck HMM.
*Read Maersk whom everyone use to follow.
Gary Ferrulli
March 26, 2018 at 3:10 pmInteresting as read the article, then the reality of the trade and they will not be
competitive. This addresses the cost per slot for “purchase”, build or charter.
Shows clearly that the bigger ships are more cost effective and if you think $130. per slot is insignificant, don’t get into the business.
But the most glaring absence is the operating costs per slot. Between the two,
HMM may be trying to get into the market just to be there, but they will not be
competitive.
Mike Wackett
March 27, 2018 at 9:58 amTend to agree with you Gary that on the face of it HMM’s small ship operation cannot compete in the ULCV new world – think The Containership Coy 2010 – 2011.
However, it has loyal support from big SK manufacturers who might be prepared to pay a premium for gaining greater control over their supply chain.
Slot charterers tend not to be the first to hear of operational changes, moreover their bookings are at risk commercially from the lines that provide the slots.
And not only can HMM offer the transit USP but for example in the UK it is offering a Southampton call, which the 2M have now pulled out of entirely in favour of Felixstowe, at a disadvantage for some shippers.