VESSEL OVERCAPACITY BUILDS UP IN TRANSPACIFIC

VESSEL OVERCAPACITY BUILDS UP IN TRANSPACIFIC    The addition of substantial vessel capacity is widening the gap between supply and demand in the transpacific container trade, according to a survey by World Liner Supply, a reporting service of the ComPairData liner shipping database.
   The results of the July World Liner Supply survey show that transpacific shipping lines have expanded capacity 9 percent since July 2000, despite the slowdown in trade volumes.
   Total trade capacity has risen to slightly more than 205,000 TEUs a week this month, from about 189,000 TEUs a week in July 2000. This means an equivalent yearly one-way capacity of 10.7 million TEUs this month, compared to 9.8 million TEUs last July.
   The 9-percent increase in vessel capacity outstrips the rate of growth in cargo volumes. U.S. ports have recently reported flat container traffic volumes in the first six months of the year, compared to 2000, or even decreases that broke the trend of double-digit growth witnessed in earlier years.
   World Liner Supply said the carriers that have added the most capacity during the last 12 months are Grand Alliance lines (Hapag-Lloyd, NYK, OOCL and P&O Nedlloyd), Maersk Sealand and non-alliance carriers such as Zim Israel Navigation and Wan Hai. The Grand Alliance pushed up its total weekly capacity from to 31,377 TEUs, from 25,347 TEUs a week in July 2000, an increase of 24 percent.
   During the last 12 months, the five largest alliance and carrier groups — the New World Alliance, the Grand Alliance, the COSCO/”K” Line/Yangming alliance, the United Alliance and Maersk Sealand — further increased their share of the entire trade’s capacity, the ComPairData report said. The five major carrier groups now have 73 percent of the total capacity, up from 72 percent last July.
   Shipping lines in the transpacific trade now offer shippers 60 joint and/or individual liner services with a total of 451 liner vessels, ComPairData’s World Liner Supply survey found.