The fleet augmentation will help the world’s fourth largest container shipping line move to the third slot.In its first major shipbuilding project, the company plans to go for some 30 ships in the 8,000 TEU category, 40 ships in 5,500 TEU, 10 ships in 3,900 TEU, and 20 ships in 2,800 TEU. The company has been avoiding ultra-large ships of over 10,000 TEU. According to reports, the company is likely to place orders with Japanese and Korean shipbuilders for the new ships.
According to Evergreen chairman Chang Yung-fa, the global economy is expected to bottom out in the second half of 2011 before achieving real recovery in 2012. He believes that with the drop in global steel prices, shipbuilding cost will plunge to $10,000 per TEU in 2011, compared with $15,000 now and the global credit crisis will prevent too much tonnage.
The current shipping industry downturn, with some 200 boxships already reported out of service, could present positive opportunities for some. Mitsui OSK Lines (MOL) president Akimitsu Ashida believes that forecasts of over-tonnage in the container shipping sector will fail to materialise in the near future.
The scrapping of aged vessels, which were used longer than originally planned, will be accelerated due to the recent market deterioration. ‘These developments will reasonably and favourably contribute to adjust demand and supply balance of world tonnage’, Mr Ashida said.
He also said that such action will help reduce overall costs, particularly expenses relating to vessel maintenance and repair work, bunker fuel costs and lubricants, all of which rose sharply when material and crude oil prices remained high for a few years. ‘We can also expect other issues such as shortage of seafarers and repair docks to be eased in line with the adjustment of the shipping market’, added Mr Ashida.
‘As to our mid-term and long-term strategy, in order to prepare for future increase of demand in seaborne trade, we will fulfill our fleet plan to enhance and expand our competitive tonnage. This basic strategy remains unchanged’, he said.
