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admin | Category: Shipping Container Construction | 15.09.2014
GE’s Marine Solutions’ entry into the container ship industry also marks its intention of contributing to the technological advancement of the industry at large. Commenting on GE’s role in the project, a spokesperson from DSME said: “Our relationship with GE has been enduring and fruitful.
Ocean container shipping carriers have endured tough financial times almost it seems since the start of the Great Recession. However, that 4.6% rate will still result in new capacity of almost 800,000 TEU - roughly equivalent to about 45 new 18,000 TEU megaships. Since 1990, the total cumulative growth of ocean container capacity in terms of TEU has been 10.3%. Of course, the ocean container industry has been plagued by over capacity for a number of years now, leading to collapsing rates and big losses by many carriers. Nearly all major carriers - led by Maersk Lines - have tried to address the bottom line by investing in ever larger ships (18,000+ TEU capacity) that offer the potential for much lower operating costs per container, but have been adding those types of ships to their fleets without laying up or scrapping ships of equal total capacity.
So total industry capacity continues to grow - and consistently much faster than container volume growth. That in turn of course has led to red ink all over the income statements of the ocean carriers.
That barely break-even performance came even as container volumes at Maersk rose a healthy 7% in the quarter - but rates fell by 26% and declined across all trade routes, including key European, North American and Latin American lines.
All this of course is good for shippers in form of rock bottom rates, which are often now below variable cost for the carriers and barely covering bunker fuel costs on some routes. It is a smart solution that provides excess power on demand while reducing fuel consumption. The global container ship industry continues to grow at a steady rate, as around 90 percent of the world’s trade[1] is carried across the sea. It acts as either a generator or a booster to generate electricity from slow streaming speeds all the way up to the design speed of the vessel.
This excess energy is then directed to onboard systems when it is required, which diminishes the need to burn fuel to power these systems.
Having Maersk as a partner, our entry into the container ship industry could not be more impactful.


And while the growth in industry capacity will slow in 2016, it will still be several percentage points above volume growth. Last Friday's China Containerized Freight Index came in at a level of 643 - less than half the level in 2014, in what even then was not a great time for carrier pricing from a historical perspective. Maersk Line, the industry's largest carrier, managed to earn a profit in Q1, according to its recent earnings release, but just barely, posting funderlying earnings of just $32 million for parent company A.P. But the situation is also destabilizing the industry, leading to a growing number of mergers and a shifting group of alliances or so-called vessel sharing agreements among changing groupings of carriers - changes which in the end may not be so good for shippers.
Subject to the receipt of all required regulatory approvals Maersk will provide logistical support in addition to the funding it has already provided for scientific equipment used in the expedition to collect and analyse samples from the submarine dives and catamaran voyages and may transport the specially designed submarine plus support equipment. The Yang Tse service linking South, Central and North China to the West Coast of the United States, which is operated in tandem with Maersk Line and MSC, will recommence shipping operations from the 10th July in Xiamen. International shipping connects countries, markets, businesses and people, allowing them to buy and sell goods on a scale not previously possible.
The result in fuel savings is significant, especially when coupled with improved operational flexibility. The new service will complement the Group’s existing services between China and the US West Coast (Bohai Rim and Pearl River) thus providing optimum port coverage thanks to the addition of three new calls in Xiamen (Eastbound), Hong Kong and Qingdao as well as an extra call in Shanghai (WGQ) and allowing the company to respond to the rebound of volumes on the trade linking China to the United States by strengthening its presence and improving transit times on this key transpacific trade lane. As consumers, we have become used to seeing goods from all parts of the globe readily available in the stores we visit. Unlike its competitors, the electric machine is equipped with induction motors instead of synchronous motors. The switch reduces sulphur to the air by 80-95% in port and, as Maersk policy is to switch an entire country as opposed to a route by route policy, all of the nine ports will benefit immediately. The service will deploy a total of six vessels of 6,500 TEU capacity, covering the port rotation: Xiamen, Shanghai (Wai Gao Qiao), Qingdao, Long Beach, Kaohsiung, Hong Kong, Xiamen. By removing transformers, it offers a simpler design and therefore reduces the complexity of the system, making it more reliable and requiring less CAPEX.
The dives will run over a period of two years, after which the submarine will be donated to a U.S.
Last September we reviewed a report from the Tyndall Centre and pointed out that unilateral action was becoming necessary due to the prevarication of regulatory bodies and governments worldwide.


CMA CGM have also upgraded their Victory Bridge service linking North Europe to US South Atlantic, Mexico and the US Gulf.
The arrangement of induction motors reduces the frequency and extent of maintenance, and combined with the system’s fuel saving characteristics, bringing down the operational expenses for customers. When the Californian Air Resources Board decided they would ban vessels burning high emission fuel Maersk made a voluntary switch to low sulphur in 2006 and has since extended the programme to other regions, including ports in Texas, Hong Kong and the US Pacific Northwest. Operated in partnership with CSAV, this new service will replace the one previously operated in cooperation with MSC and will deploy five vessels of 3,000 teus, three of which will be supplied by CMA CGM.
The intention is to strengthen CMA CGM’s presence on both trades between North Europe to the US and North Europe to Mexico.
The principal pollutant from marine fuel is Suphur Dioxide (SO2) which is a precursor to particulates generally harmful to human health and the dioxide can also combine with other chemicals such as Nitrogen Dioxide to form what we know as acid rain. There will be an extra port call in Rotterdam to meet the needs of North European exporters as well as reefer importers with two weekly sailings between Mexico & North Europe and providing the most direct route and fastest transits from South Florida to Northern Europe.
Over the course of approximately two years the team will uncover the deepest trenches of the Indian, Atlantic, Arctic and Southern Oceans. Virgin Oceanic was formed by the Virgin Group to act as a sponsor of and partner on the Five Dives Expedition.
The expedition will require various regulatory approvals, including export licenses, which Deep Sub LLC will obtain. Welsh bought the submersible after the death of Branson’s old fellow adventurer Steve Fossett who died in 2007 and it was Fossetts intention to pilot the mission. When everything is in place the DeepFlight Challenger dives will include the Mariana Trench in the Pacific Ocean, the Diamantina Trench in the Indian Ocean, the Atlantic Ocean’s Puerto Rico Trench, Molloy Deep in the Arctic Ocean and lastly the South Sandwich Trench below the Southern Ocean.



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