1. Developments in Container Shipping
Frans Waals
DYNAMAR

2. The (Financial) sTATE of container shipping

3. Operating Profit/Loss 2011-15 Container
Europe
Korea
China
Taiwan
Japan
Other
Those making profits
Those making losses

4. Net Profit/Loss 2011-15 Container
Europe
Korea
China
Taiwan
Japan
Other
Those making profits
Those making losses
Severe financial problems
Weak financial state

5. Revenues versus costs

6. Why These Losses? – Low Rates
Low trade growth
High growth shipboard capacity
Increased transparency of the market
Lack of self-control from the carriers

7. Worldwide Trade Volumes
Trade (TEU) → 155 mn
Growth (%) - CAGR 4.1%

8. TEU Fleet Capacity
Cap (TEU) → mn
Growth (%) – CAGR 8.5%

9. Worldwide Trade vs Fleet TEU Capacity
Trade index - 156
Fleet cap index - 226
Cap + slow steaming - 196

10. Ship Capacity Scrapped/Delivered
,000 TEU scrapped
,000 TEU delivered

11. Transparancy - Freight Indices
CCFI
SCFI
WCI
CTS

12. SCFI Spot Rates Far East-Europe

13. Why These Losses? – High Costs
Expensive ships
Newbuilding 18,000+ TEU 2011: USD 185 million, 2017: USD 140 million
Charter oldPanamax 2011: USD 20,000/month, 2017: 4,000/month
High debts/financing costs
Hanjin collapsed with a debt of USD 5 billion
Maersk Line pays almost no interest
Quality of management

14. STRUGGLING FOR SURVIVAL

15. Actions from the Carriers
What has been done?
Reducing staff
Selling assets
Attracting fresh capital
End loss-making operations
Withdrawing from trades
What is being done?
Merger/takeovers
Bigger alliances

16. Mergers/Takeovers X

17. Europe/Mediterranean-Far East
North Europe – Far East
North Europe – Far East
Mediterranean – Far East
Before
AFter
Mediterranean – Far East
CKHYE Alliance
Coscon
“ K” Line
Hanjin
Yang Ming
Evergreen
CKHYE Alliance
Coscon
“ K” Line
Hanjin
Yang Ming
Evergreen
Ocean Alliance
CMA CGM/APL
CoscoSL
Evergreen
OOCL
Ocean Alliance
CMA CGM/APL
CoscoSL
Evergreen
OOCL
The Alliance
Hapag-Lloyd
“K” Line
MOL
NYK
Yang Ming
The Alliance
Hapag-Lloyd
“K” Line
MOL
NYK
Yang Ming
G6 Alliance
APL
Hapag-Lloyd
Hyundai
MOL
NYK
OOCL
G6 Alliance
APL
Hapag-Lloyd
Hyundai
MOL
NYK
OOCL 2M
MSC
Maersk Line 2M
MSC
Maersk Line 2M
MSC
Maersk Line 2M
MSC
Maersk Line
Hyundai
Hyundai
Ocean Three
CMA CGM
China Shipping
UASC
Ocean Three
CMA CGM
China Shipping
UASC
Hamburg Sud?
ZIM
PIL
Hamburg Sud?
Hamburg Sud
Hamburg Sud
ZIM
PIL

18. Far East-US West Coast/East Coast
Far East – US East Coast
Before
AFter
Far East – US West Coast
Far East – US East Coast
CKHYE Alliance
Coscon
“ K” Line
Hanjin
Yang Ming
Evergreen
CKHYE Alliance
Coscon
“ K” Line
Hanjin
Yang Ming
Evergreen
Ocean Alliance
CMA CGM/APL
CoscoSL
Evergreen
OOCL
Ocean Alliance
CMA CGM/APL
CoscoSL
Evergreen
OOCL
The Alliance
Hapag-Lloyd
“K” Line
MOL
NYK
Yang Ming
The Alliance
Hapag-Lloyd
“K” Line
MOL
NYK
Yang Ming
G6 Alliance
APL
Hapag-Lloyd
Hyundai
MOL
NYK
OOCL
G6 Alliance
APL
Hapag-Lloyd
Hyundai
MOL
NYK
OOCL 2M
MSC
Maersk Line 2M
MSC
Maersk Line
ZIM
ZIM 2M
MSC
Maersk Line 2M
MSC
Maersk Line
Hyundai
Hyundai
ZIM
ZIM
Ocean Three
CMA CGM
China Shipping
UASC
Ocean Three
CMA CGM
China Shipping
UASC
PIL
Hamburg Sud?
Wan Hai
Wan Hai
Matson
Hamburg Sud
Westwood
Hamburg Sud
PIL/Wan Hai
Hamburg Sud?
Matson/Westwood
SM Lines

19. Transatlantic Before AFter North Europe – North America
Mediterranean – North America
Before
AFter
North Europe – North America
Mediterranean – North America
CKHYE Alliance
Coscon
“ K” Line
Hanjin
Yang Ming
Evergreen (n.p.)
CKHYE Alliance
Coscon
“ K” Line
Hanjin
Yang Ming
Evergreen
Ocean Alliance
CMA CGM/APL
CoscoSL
Evergreen
OOCL
Ocean Alliance
CMA CGM/APL
CoscoSL
Evergreen
OOCL
The Alliance
Hapag-Lloyd
“K” Line
MOL
NYK
Yang Ming
The Alliance
Hapag-Lloyd
“K” Line
MOL
NYK
Yang Ming
G6 Alliance
APL
Hapag-Lloyd
Hyundai
MOL
NYK
OOCL
G6 Alliance
APL
Hapag-Lloyd
Hyundai
MOL
NYK
OOCL 2M
MSC
Maersk Line 2M
MSC
Maersk Line 2M
MSC
Maersk Line 2M
MSC
Maersk Line
Hyundai
Hyundai
CMA CGM
CMA CGM
ZIM
ACL
UASC
Hamburg Sud
Melfi
ICL
ZIM
Hamburg Sud
UASC
Turkon
Melfi
ACL
Hamburg Sud?
Turkon
ICL
Hamburg Sud
Marfret

20. Topics for the (Near) future

21. Total fleet: 559 Ships/2,520,000 TEU
oldPanamax (4,000-5,100 TEU)
Total fleet: 559 Ships/2,520,000 TEU
Idle: 112 Ships/550,000 TEU

22. 18,000+ TEU Vessels Delivered: 46 Ships/871,800 TEU
On order: 59 Ships/1,155,000 TEU

23. Devaluation of Ship

24. The Bachelors

25. The Unknown Factor

26. The End