Vessels May Be Slowing As Capacity Comes On Line

Ocean freight carriers are continuing to add new ships to the Asia/European market, but we may be about to see longer transit times as vessels could be set to slow down.

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Although demand continues to be weak, plenty of new capacity has been introduced through ULCVs (Ultra Large Container Vessels) during recent times and this may contribute to the slowing down of vessels.

Maersk are expected to add nine new vessels to loops in June and according to a recent article in the Loadstar, they have stated “The added vessels will allow us to reduce speeds, providing a needed buffer to absorb schedule challenges, improve reliability and decrease the risk of void sailings”.

It is understood that an average of six days may be added to 2M round trip voyages on Asia-Europe loops, or three days per import and export journey. Slowing vessels down would significantly reduce emissions and therefore help steamship lines meet the IMO carbon intensity measures which came in six months ago.

MSC, THE Alliance and the Ocean Alliance, have all brought new build ULCV's online in recent weeks and may also be committed to reducing vessels speeds.

The Croft Cargo team are watching the situation closely.

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