[ Conainership Capacity Utilization Rates at 75 Percent ]

Containerships calling U.S. ports utilized 75% of their capacity in th
e year-to-date period through June 1995, according Ship Horizons, a c
apacity utilization report produced by the Port Import Export Reportin
g Service(PIERS), a division of the journal of Commerce.
A weighout factor is offen applied to calculations of U.S. export capa
city utilization. U.S. export commodities, which consist mainly of ind
ustrial raw materials, tend to cause a containership to reach its maxi
mum weight capacity before it meets its maximum volume capacity.
Export utilization rates climbed 6% between the last half of 1994 and
the first half of 1995 becouse of ongoing recovery in global markets d
riven by volume growth to Europe and Asia. As for imports, the usual h
oliday season produced a peak of 79% in utilization rates during the t
hird quarter of 1994. This predictable spike was driven by traffic fro
m the Pacific, where most consumer imports are sourced. Pacific eastbo
und capacity utilization was ten percent higher during the busy holida
y season.
In 1996, capacity utilization rates are on the way down. Single-digit
growth in the number of TEUs lifted combined with a double-digit jump
in new containership capacity deployed is bound to depress utilization
rates. In dollar terms, that means too few shippers will be bargainin
g for the expanded space, exerting downward pressure on freight rates.