Opportunities for small container ships
NEWS
Release time:
2023-07-20 16:29
Summary:
As globalized trade continues to grow, the ability to do business on a sustainable basis has become a means of survival for the world's most competitive companies. For consolidators, the more they are able to meet the needs of their customers, the greater their competitive advantage, which may provide opportunities for smaller container ships.
In the past, these 1,000-4,999 TEU containerships laid the foundation for the modern container ship market. And after larger containerships and the economies of scale they offered became the focus of the market, smaller containerships quickly lost their appeal. Now, with the opening of the New Panama Canal, small containerships no longer have their main advantage, and many believe that these containerships may be slowly dismantled in the future until they disappear altogether.
However, the fate of small container ships may not be as dire as one might think. As large container carriers and ultra-large container ships mainly serve large port hubs around the world, smaller container ships still have the advantage of being flexible and focusing on more niche trades.
Once a container ship is unloaded from the vessel at the port of delivery, the logistics costs for the end customer do not end there. Typically, container ships use trucks or trains for long-distance inland transportation, which is often a very expensive part of the journey. Especially in container ports, this huge range of demands can often cause freight rates to skyrocket.
In this regard, the use of smaller container ships can sometimes be a cost-saving solution, as the feeder transportation provided by these ships, as well as the smaller alternative ports of call, may make the final logistics of the shipment cheaper.
At the same time, smaller containerships can also provide better niche arbitrage when transporting commodities such as sugar, waste or petrochemicals. In this case, the use of smaller container ships allows cargo to be delivered more accurately and on time to designated ports without having to wait for regular liner service.
However, such opportunities are usually not too frequent and need to be booked in advance. Smaller container ships therefore remain a more important link in the consolidation supply chain.
2023-07-20
2023-07-20
2023-07-20