A capacity race is afoot with Chile's CSAV and Israel's Zim, two of the weaker players in the top 20 global carriers, leading the pack despite an excess tonnage now flooding the market, reports Alphaliner.
The smaller players are continuing to undertake capacity expansion programmes and forge carrier alliances in an effort to match the scale advantages enjoyed by leading shipping lines, CMA CGM, MSC and Maersk Line, partners in the proposed P3 mega alliance, says Alphaliner.
Nine out of the 17 carriers that publish quarterly results recorded positive operating earnings in the third quarter, but the performances of individual ocean liners were mixed and ranged from -5.1 per cent for Regional Container Lines (RCL) to +8.1 per cent for Maersk.
The first and third largest shipping lines, Maersk and CMA CGM, have since 2010 consistently outperformed the rest of the market, with the performance gap (based on the difference of the operating margins of the two carriers against the market average) ranging between four per cent and eight per cent.
In spite of the performance gap CSAV and Zim are sticking to their plans to expand their fleets.
CSAV has raised US$330 million in capital to acquire seven new 9,300-TEU ships to be delivered from the end of 2014, some of which will replace smaller vessels currently chartered by the company.
Zim has also confirmed that "the company intends to renew its fleet with new large vessels," even as it continues to negotiate on a debt settlement programme that is expected to see some of its creditors convert part of the debt to equity.
Zim still has four 12,600-TEU ships on order at Samsung Heavy Industries, and four 8,800-TEU ships on order at Hyundai Samho that were ordered at the height of the newbuilding price cycle in 2007, which it is still negotiating to replace with alternative orders at reduced prices.
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