ONE CARRIER IN PARTICULAR HAS ABSORBED HANJIN'S VESSELS
Collapsed South Korean carrier Hanjin controlled a fleet of 102 container vessels, which have since been absorbed by other carriers. One carrier in particular has taken over a third of Hanjin's former capacity, writes Alphaliner.
It has taken more than a year for the market to absorb the tonnage left behind in the wake of Hanjin Shipping's bankruptcy in August 2016.
The rate truce that carriers have largely abided by since Hanjin’s sudden exit one year ago, now appears to be crumbling."
The South Korean container carrier sent a total of 102 ships into the market of idle vessels, which grew to 1.6 million teu in one stroke with the 0.5 million teu added by Hanjin. Today, however, things look different – almost all of Hanjin's vessels have been absorbed by other shipowners.And one carrier in particular sits on the majority, shows an analysis from Alphaliner.
Altogether, Maersk Line has taken over 26 of Hanjin's old vessels on charter and has also taken two vessels back from Hanjin which were chartered out to the South Korean carrier. The capacity totals 199,700 teu, 31 percent of what Hanjin controlled.
Maersk informs ShippingWatch that a majority of the chartered Hanjin vessels have been deployed to service the agreement made with HMM through the 2M partnership with MSC, and to handle the extra volumes gained from the HMM arrangement.
MSC has also taken on several vessels from Hanjin, 12 altogether, while Hapag-Lloyd has picked up six, according to the analysis. Others have opted to buy vessels, including recently-established South Korean carrier SM Line, which was launched with vessels bought from Hanjin's bankruptcy. Only six vessels controlled by Hanjin have been scrapped.
While container carriers seem to have held back and maintained discipline after Hanjin's bankruptcy, this picture has now changed. The market has entered a new era after Hanjin, writes Alphaliner.
Pressure on rates
Since April, the number of idle vessels has declined dramatically, while the delivery of the new ultra-large vessels of up to 21,000 teu continues.
This has added over one million teu to the active fleet, when compared with September last year – an increase of 5.7 percent compared to one year ago.
"While strong cargo demand has kept fleet utilization levels at above 90 percent on most headhaul routes this year, the onset of the slack winter season from October is expected to put pressure on freight rates," writes Alphaliner, adding:
"The rate truce that carriers have largely abided by since Hanjin's sudden exit one year ago, now appears to be crumbling. Rate slashing just ahead of the October holidays in China points to further rate instability as carriers continue to jostle for market share.
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