Wednesday, October 15, 2014

Container Shipping - Is the strong level of demand sustainable going forward?

Container Shipping - Is the strong level of demand sustainable going forward?: "Why might the Far East to US East Coast lane become the battlefield of the future? For several reasons. A) The expansion of the Panama Canal to service container ships up to 13,000 TEU from 2016. B) The enlargement of Suez Canal started only a couple of months ago. C) The heightening of the Bayonne Bridge to allow ULCS to call New York/New Jersey. D) The ongoing delivery of ULCS is likely to introduce some of the cost-effective ULCSs on this long-haul trade to reap the economics of scale, beyond the preferred trade for them which is Far East to Europe. E) The expansion of other US East Coast ports that allow them to receive the giant vessels in future, by dredging and introducing larger “Super-Post-Panamax” cranes. The volume growth is already there with much room for expansion. Time will tell how that trade will develop."