HARD as times are, they are not that bad for container
shipping and profitability is within reach given current rates, says TK
Konishi, senior vice president at Mitsui OSK Lines.
"Most carriers are still suffering from losses in the
container sector, including us. But compared to last year, or after the Lehman
shock, freight rates now are low, but can recover the cost of voyages. That's a
fact," he said.
"We are not so far from the rate level where we can
be profitable. That's the reason carriers can hang in there," Mr Konishi
said in an interview with London's Containerisation International.
"Since summer last year, exports from Asia to Europe
and the US have been stronger than the year ago level and intra-Asian trade has
been growing quite well," he said.
There are problems, Mr Konishi said. "The underlying
capacity is there. It's fair to say that this year may be better than last
year, but perhaps there won't be a big turn around."
Even where carriers can control their lives, such as
reducing costs, by building larger and more fuel efficient ships, brings its
own problem - overcapacity.
"Because every carrier is trying to do his best to
manage costs, carrier's build new ships and then comes another round of
overcapacity. That's the kind of circle we've been in for the last two
years," said Mr Konishi.
"Its not really the size of ships that matters, but
the slot costs. We'll have 48 ships [of 13,000 - 14,000 TEU] by 2016 and only
five of them ordered before the Lehman shock at high prices," he said.
"Those 48 ships are very cost competitive when
compared to Maersk's 18,000-TEU, 19,000-TEU vessels. There is not much
difference in slot costs between them," he said.
Maersk paid US$185 million for its 18,000-TEUers in 2011,
higher than the $130 million - 150 million paid today for the same size ship.
"Maersk vessels are awfully expensive. Of course
they have some edge in fuel costs but the difference is very small [between the
P3 and G6 fleets] when slow steaming," he said.
Source : HKSG.
