CONTAINER LINE EXCESS CAPACITY GROWS

Container line capacity to grow by 680,000 TEU in 2016. Adding to excess capacity and rate collapse.

BIMCO: Container shipping fleet capacity to grow 3.4% in 2016

However, the growth will still be enough to add about 680,000 TEUs of capacity, resulting in the world's container fleet surpassing the 20 million-TEU mark.

By Chris Dupin |Tuesday, May 17, 2016

   Reviewing the outlook for shipping, the Baltic and International Maritime Council (BIMCO) said that even though the container shipping fleet will grow just 3.4 percent in capacity in 2016, representing the slowest growth rate ever, the growth will still be enough to add about 680,000 TEUs and result in the world fleet passing the 20 million-TEU mark.
   Ultra large containerships (ULCS), those with more than 10,000 TEUs of capacity, now account for 18 percent of the world container capacity, BIMCO said.
   In 2007, ULCS accounted for just 0.5 percent of the global fleet capacity.
   “The total containership fleet in TEU increased annually from 2006 onwards by 9 percent, in contrast to the number of ships which actually increased by only 3.7 percent on an annual basis," BIMCO Chief Shipping Analyst Peter Sand said. "Despite the enormous growth of ULCS market share, the post-panamax fleet of 8,000 TEUs – 12,000 TEUs in relation to the total share and TEU capacity, is still the preferred shipping class, accounting for around ¼ of the container ship fleet.”