The Surprising Impact of Ship Age on Carrier Rankings

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Credit: jamie-o-sullivan-unsplash

In the intricate world of maritime trade, subtle shifts can often bear significant implications. The Far East to Mediterranean trade route has recently witnessed a nuanced yet noteworthy change in its Carrier Efficiency Index (CEI) during Q2 2023. The xeneta source.

  • The Far East to Mediterranean trade’s Q2 2023 CEI witnessed a slight rise due to operational changes, but its impact on overall efficiency remains complex.
  • ONE stands out with its youthful fleet, averaging 3.9 years, contributing to its performance, while older fleets like MSC and Hapag-Lloyd faced CEI challenges.
  • Ship age emerges as a key factor in CEI rankings, influencing efficiency and carbon footprint, setting the stage for potential shifts in trade dynamics.

Operational Tweaks 

A Closer Look at the 0.4 Index Point Rise: Unraveling the Q2 2023 CEI for the Far East to Mediterranean trade route, we uncover a marginal 0.4 index point increase, reflecting operational adjustments by carriers. However, this adjustment doesn’t necessarily denote a direct positive influence on the average CEI. 

The ONE Distinction

ONE’s Remarkable Fleet Age: Amongst carriers traversing this route, ONE stands out for a notable reason – its fleet’s youthful average age. With an average of just 3.9 years, it starkly contrasts with the trade lane’s average of 7.5 years. This age factor emerges as a key contributor to efficiency.

Ship Age and Performance Patterns

Role of Ship Age in CEI Rankings: Examining Q2 2023’s top performers – CMA CGM and Yang Ming – reveals a common thread: ships aged around 6.9 years. ONE’s strategy of deploying smaller yet well-utilized vessels, with a remarkable filling factor of 93.4%, stands in contrast to carriers opting for larger vessels but grappling with occupancy challenges.

Future Implications

Beyond ONE: MSC and Hapag-Lloyd’s CEI Endeavors: While ONE shines with its youth, MSC and Hapag-Lloyd’s CEI scores surpassing 100 (101.6 and 109.5 respectively) spotlight their older fleets, differing by 5 years from ONE. Ship age emerges as a decisive factor in the second quarter of 2023.

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Source-xeneta