Maersk fires back with mammoth mega-ship order

Maersk fires back with mammoth mega-ship order    Maersk Line said Monday it has placed a mammoth containership order for as many as 30 vessels of 18,000 TEUs capacity, confirming reports that first emerged in November.
   The order would dwarf in scope any previous order, both in terms of total outlay for a container line, and in terms of the size of vessels commissioned.
   According to the records of American Shipper affiliate ComPair Data, the largest ships in operation today are the Emma Maersk and her sister vessels, with an estimated total capacity of 14,700 TEUs each. Maersk said in a statement Monday that the Emma-class vessels have capacity for 15,500 TEUs.
   The new vessels, to be built by South Korea's Daewoo Shipbuilding & Marine Engineering Co., would be 16 percent larger and would cost the Danish line $5.7 billion if Maersk takes up all options. The contract calls for the delivery of 10 such vessels from 2013 to 2015, with a Maersk option for 20 more. Initial reports pegged the Maersk order at 10 vessels, with an option for 10 more, at a total cost of $4 billion.

Emma Maersk

   Maersk releases its 2010 financial statements on Wednesday, and it is expected to rake in huge, possibly record, profits after freight rates and demand recovered substantially from the lows of early 2009.
   Maersk is the world's biggest line by fleet capacity when considering the fleets of subsidiary lines Safmarine and MCC Transport. Last week, it was reported that the second-largest line, Mediterranean Shipping Co., had overtaken Maersk as the biggest individual line. MSC also has vastly more capacity on order than Maersk (537,886 TEUs versus 316,798 TEUs for Maersk, according to the maritime news service Alphaliner), but the Danish line's order announced Monday would help redress that gap even if none of the options for the additional 20 ships were taken.
   To get a measure of how huge the order is from a capacity standpoint, 30 vessels at 18,000 TEUs each would provide Maersk with 540,000 TEUs of new fleet capacity. The capacity from Monday's order alone would be larger than all but the top eight container lines in existence today.
   Maersk Chief Executive Officer Eivind Kolding said in a statement Monday that the ships — dubbed triple-E class for economy of scale, energy efficient, and environmentally improved — would help his company reduce carbon emissions.
   'One of the biggest challenges we face in the world today is how to meet the growing needs of a growing population and the impact that is going to have on our planet,' Kolding said in a press conference in London with Daewoo representatives. 'International trade will continue to play a key role in the development of the global economy: but, for the health of the planet, we must continue to reduce our CO2 emissions. It is not only a top priority for us, but also for our customers, who depend on us in their supply chain, and also for a growing number of consumers who base their purchasing decisions on this type of information.'
   Aside from emissions reductions, the new ships will give Maersk huge economies of scale on major trade routes. The ships will more than likely be put into operation in the Asia/Europe trade, the only one capable of handling the largest ships in operations today, both from a demand and port infrastructure standpoint.
   The ordered ships are a row wider than the Emma Maersk-class vessels, and also reportedly have a U-shaped hull (rather than V-shaped) to accommodate more containers. The ships have a slightly slower operating speed; an instructive quote from Maersk was that the vessels will have 'specially optimized hull and bow forms to guide the vessel through the water at the speeds typical in the industry today.' Maersk has pioneered the modern use of slow steaming on long-haul trades to cut fuel consumption.
   Maersk estimates it will use 35 percent less fuel per container than the 13,000-TEU ships being delivered today.
   More information on the triple-E class vessels is available here. ' Eric Johnson