Asia/Pacific News
If You Want to Make Money, Your Ships Need to be Fuel-Efficient, Says Analyst
China Shipping Container Lines Co. (CSCL) is ready for a November launch of the first in a series of five box ships that will be the largest in the world, taking the title from Maersk's 18,000 TEU capacity Triple-E vessels, Bloomberg reports.
With a capacity of 19,100 TEU, the new vessels are said to achieve a 20 percent reduction in fuel usage versus a typical 10,000 TEU box ship.
"The example of Maersk is quite clear," said Lawrence Li, a shipping analyst at UOB Kay Hian Holdings Ltd.
"If you want to make money now, your ships need to be fuel-efficient and you need to have economies of scale so that you can lower per-box cost or you need to provide a premium service."
The bunker savings come from a combination of slow steam and various vessel technology improvements.
"Maersk has shown the benefits of having vessels that are both fuel efficient and provide economy of scale," said Park Moo Hyun, Analyst at Hana Daetoo Securities Co. in Seoul.
"The shipping industry is no longer just about rates. It's also about who can cut costs more effectively," he said.
The CSCL vessels are being built by South Korea's Hyundai Heavy Industries Co.
Earlier this month CSCL announced it was forming the Ocean Three alliance with France's CMA CGM SA (CMA CGM) and United Arab Shipping Co. (UASC).
