While lines are using blank sailings to force a price correction in the containerisation market (*), data out of Hong Kong points to global box ship capacity growing at a pace unlike anything ever seen.
According to ocean freight aggregator Linerlytica, capacity has been growing at an average rate of more than 190 000 TEU a month since April.
The last time capacity expansion spiked the way it has been was in 2014-15 when the average growth rate was 120 00 TEU per month.
Similar growth was also recorded in 2006-2008.
This time though capacity expansion is at a record high, calculated by including newbuild deliveries and existing vessel upgrades.
It also includes scrapped capacity and other vessels taken out of service.
Vessel scrapping remain at levels of less than 10 000 TEU a month, Linerlytica said.
The market intel outfit warned against unchecked bull market growth.
“The current growth burst will pose a significant challenge to carriers’ ability to manage the excess vessel supply,” Linerlytica said.
* Read this for context: “Blanks sailings fail to lift drop in spot prices.”
