Intra-Europe container shipping capacity has gone up nearly 18% year-on-year, as the Red Sea crisis results in more feedering and larger ships being assigned to this segment, according to Alphaliner, says an article published on a container news website.
Summary
- Intra-Europe container shipping capacity surged nearly 18% year-on-year, reaching over 170,000 TEUs.
- Number of vessels operating in the segment increased from 581 to 645.
- Larger container ships are being assigned to the intra-European trade to address longer sailing times from Asia to Europe due to vessel diversions to the Cape of Good Hope.
- Average size of vessels increased from 1,671 to 1,773 TEUs.
- Feedering services employed to expedite cargo deliveries.
- North Europe-Mediterranean trade route experienced a significant capacity increase of approximately 23%.
Increased Capacity And Vessels
The intra-Europe container shipping capacity has surged nearly 18% year-on-year, resulting in over 170,000 TEUs now servicing this market. The number of ships operating in this segment has also seen a rise, growing from 581 to 645 vessels.
Larger Ships And Feedering
To address longer sailing times from Asia to Europe caused by vessel diversions to the Cape of Good Hope, larger container ships are being assigned to the intra-European trade. The average size of these vessels has increased from 1,671 to 1,773 TEUs. Additionally, feedering services have been employed to expedite cargo deliveries.
Growth In North Europe-Mediterranean Trade
The North Europe-Mediterranean trade route has experienced a significant capacity increase of approximately 23%. This growth is attributed to capacity upgrades by carriers like MSC and the addition of ships by Dubai-based Crios Shipping and CStar Line.
Expansion Of Russia-Focused Carriers
In response to mainline operators abandoning Russia-bound services due to geopolitical tensions, Russia-focused carriers have expanded their services, filling the resulting gap in the market.
Deployment Of Neo-Panamax Tonnage
The Red Sea crisis has prompted carriers to deploy large neo-Panamax tonnage on extra loader sailings in Europe, altering the shipping dynamics in the region.
Market Share Dynamics
MSC continues to dominate the intra-European market with a 30% market share. CMA CGM and Maersk follow closely behind, with market shares of 15.8% and 11.7% respectively.
Strategic Adjustments By Carriers
Carriers such as Maersk have made strategic adjustments to their services and fleet sizes to adapt to changing market conditions. This includes increasing market share, vessel size, and launching new intra-Europe services to meet growing demand.
Overall, the Red Sea crisis has instigated significant shifts in the intra-European container shipping sector, compelling carriers to adjust their strategies to navigate challenges and capitalize on emerging opportunities.
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Source: container news
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