Hanjin Shipping Co, South Korea’s largest shipping line, and China Shipping (Group) Co (中國海運集團) said they were close to ordering new vessels as world trade rebounds from the global recession.
Hanjin may announce a deal for mid-sized container ships by as early as year-end, chief executive Kim Young-min told a conference in Guangzhou, China, yesterday.
China Shipping will place an order soon, president Li Shaode (李紹德) said at the same event, but declined to say which type of ships the group was looking at.
Evergreen Group (長榮集團) is also close to ordering about 10 ships, as part of its plans to buy 100, as global trade recovers from a downturn last year that caused industrywide losses.
Global container-shipping volume could jump as much as 8 percent next year, as economic growth in the US and Europe spurs demand for Asian-made goods, Kim said.
“The worst is over for Asian shipping lines, so it’s a good time to order vessels,” said Minoru Matsuno, president of Value Search Asset Management Co, a Tokyo-based investment advisory firm.
“At the same time, the industry needs to ensure it doesn’t repeat the overcapacity mistakes that helped hammer rates last year,” he said.
Evergreen Group, Asia’s largest container line, plans to order ships able to hold about 8,000 containers, vice chairman Bronson Hsieh (謝志堅) said.
The Taiwan-based firm has ordered 20 similar vessels, worth about US$2 billion, from Samsung Heavy Industries Co since June. Second-ranked Neptune Orient Lines Ltd has ordered 12 ships from Daewoo Shipbuilding & Marine Engineering Co during the same period.
The global economy is recovering and the shipping market is “roaring,” Wei Jiafu (魏家福), chairman of China Cosco Holdings Co (中國遠洋控股), Asia’s biggest shipping line by market value, said at the Guangzhou conference.
However, the industry needs to adopt a “more rational mentality” to prevent a glut of new vessels from dampening rates, he said.
China Cosco has no plans to order vessels this year, and it will assess market conditions before deciding on fleet plans next year, he said.
Sinotrans & CSC Holdings Co (中外運航運) plans to adjust orders in segments where there is overcapacity, president Zhao Hu-xiang (趙滬湘) said, but declined to elaborate.
The company is China’s third-largest state-controlled shipping group behind China Cosco parent, China Ocean Shipping (Group) Co, and China Shipping.
Shipping lines have eased overcapacity by scrapping vessels and operating ships more slowly. This reduces capacity as the same number of vessel make fewer trips and also cuts back on fuel usage.
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