Shipping lines raise 2006 capacity 14%, fastest in 6 years

AP Moller-Maersk and 407 shipping lines increased their capacity to move containers 14 percent in 2006, the fastest pace in six years, as trade expanded, data from Containerisation International(CI) showed.

Capacity at the world? shipping lines rose to 11.31 million TEU in 2006, based on numbers posted on Containerisation International? website. The capacity increase was the biggest since the industry information provider started compiling the data in July 1999.

Hyundai Heavy Industries(HHI) and other Korean shipyards, among the world? largest, have received record orders in the last three years, prompted by expanded global trade and increased demand to explore and transport oil and gas. Global trade is forecast to grow 7.6 percent in 2007, according to the International Monetary Fund(IMF).

Maersk, Mediterranean Shipping Co(MSC) and other sea carriers have been charging less to move cargo since the second half of 2005 as a record number of new vessels are delivered.

About 38 per cent of the current containership fleet is on order, according to Containerisation International.

The shipyards in Korea, which won almost half of the total global orders last year, reported a record 90.3 billion dollar worth of vessels on their backlog list.

Shipping lines in Europe added greater capacity than rivals in Asia as they started operating more vessels that can carry over 8,000 containers each.

Maersk currently operates the world? biggest ship that can carry at least 11,000 containers.

Capacity at Maersk, the world? biggest container shipping line, increased 56 percent to 1.57 million boxes after purchasing P&O Nedlloyd in May 2005.

MSC, the world? second-largest operator of container ships, added 32 per cent more capacity to 1.02 million containers last year, while Hapag-Lloyd doubled its capacity to 454,526 containers after the German company acquired CP Ships in 2005.

Capacity at China Ocean Shipping? container shipping unit, COSCO Container Lines(COSCON), increased 26 percent last year to 390,354 containers, overtaking Taiwan? Evergreen Marine Corp to become Asia? biggest container shipping line, based on the data from Containerisation International.

Taipei-based Evergreen? capacity increased 9 percent to 377,334 containers.

China Shipping Container Lines(CSCL)? fleet size rose 15 per cent to 387,168 containers last year as Korea? biggest shipping line Hanjin Shipping increased 8.7 percent to 337,378 containers.

Nippon Yusen KK(NYK), Japan? largest shipping line, expanded its capability 11 percent to 283,109 last year.

Neptune Orient Lines(NOL)?container unit, APL increased its capacity by 5.9 percent to 342,461 containers.