Maersk Line: More ULCVs Coming "Like It or Not"

Maersk Line says more ULCVs means more cooperation is needed to mitigate congestion at ports.

Michael White, President of Maersk Line North America, says big container ships are "necessary" and "here to stay," so more cooperation between terminals, ocean carriers, and cargo interests is needed to avoid port congestion, JOC reports.
 
"Everyone has a role to play," stated White at the recent South Carolina International Trade Conference.

"Sometimes we're quick to point fingers or assess blame in certain areas about difficult challenges we face, rather than collectively coming together to find solutions.

"The big ships are coming. They're no surprise. They didn't sneak up on us. We've been talking about them for years."

White asserts that carriers' large ships and vessel-sharing agreements are a rational reaction to falling rates in order to reduce costs while still meeting anticipated growth demand.

"I think that's something that is just a reality. All carriers have to find a way to reduce costs...and reducing your average slot cots is a big element of that," explained White.

"I think big ships are an opportunity, and like it or not there are going to be more of them."

Working one large vessel instead of a number of smaller ones can cause difficulties, says White, but it can also permit more effective use of ship-to-shore cranes, lessening less time consuming tasks like hatch cover removal.

Philip Damas, director, supply chain advisors for Drewry Shipping Consultants Ltd. (Drewry), notes that a 1.639 million TEUs of capacity, a record breaking number, are set to be delivered this year, most of which are vessels with 10,000 TEU and above. 

In April,Drewry said the container shipping industry will continue to be hit by falling rates caused by overcapacity as shipping lines continue to order large ships.