CSCL to add 13 new vessels to fleet

CHINA Shipping Container Lines (CSCL) says that it will put 13 new vessels into operation this year as part of its plan to continue optimising its fleet structure and improve its core competitiveness, according to a corporate presentation accompanying its 2005 annual results.

The carrier's near-term ambition is to become the world's third-largest container shipping company. It is currently ranked sixth.

The new containerships will have a total capacity of 63,992 TEU. Several of them will be super-large container vessels with a capacity of 9,600 TEU, which will be put into operation in the Far East/Europe trade lanes.

While there is some debate over the wisdom of introducing mega-vessels, CSCL claims that the deployment of new and large container vessels was an important factor in its increase in turnover last year.

As of December 31, 2005, post-panamax vessels (those with over 4,000 TEU capacity) accounted for 76.7 per cent of the total capacity of the group. This was 347,851 TEU after 21 new vessels with a capacity of 94,113 TEU were added to the fleet in the course of the year.

After the 13 new vessels enter service this year, the number of newbuilds remaining to be delivered will drop to seven in 2007. They are expected to increase total capacity by 48,650 TEU. The number of newbuilds scheduled to join the fleet thereafter will go up to 10 in 2008, with additional capacity planned at 35,090 TEU. 2009 should see the addition of 12 new vessels, but these will be smaller than those being brought into the fleet this year, so the additional capacity will be only 41,430 TEU, the company said.

May-9-2006