Container Fleet Capacity
The international freight shipping industry always goes through changes. One example of this regards the container ship fleet levels, which refers to the vessels that go out in transit. Alphaliner, a major logistics and shipping analyst, recently projected that container ship fleet levels will decrease to new lows. The big problem associated with this is due to the shipping capacity around the World, which is shrinking. As a novice shipper, you may think that this news does not impact you. However, it turns out that anytime the industry’s capacity levels are in question, this could impact everything including what you pay and the service that you receive.
There are numerous factors for the news of lower container ship fleet levels. In today’s cargo shipping market, the older fleets of vessels are being scrapped all of the time due to new improved fleets available. There are deferred deliveries that happen all of the time that delay the ships. Overall, the slow economy and the changing demands for shipping are having a major impact on this issue. Part of the reason demand changes is because of the changing container shipping rates, and price factors like a general rate increase will also play a role in this process.
Hopefully, container fleet capacity can increase. There could be some improvement that occurs on a quarter-by-quarter basis. New larger ships can also help improve any scaling problems. If there are container fleet capacity increases, then the industry can rebound in a big way.