However, ultra-large containerships need to run with sufficient utilisation levels to enjoy the economy of scale advantage over their smaller ship-operating rivals –- after all that is the object of the billions of dollars invested in these behemoths, and not least the new attraction for a vessel sharing marriage between hitherto unlikely bedfellow competitors.
Indeed, the carrier members of the east-west alliances are now resigned to filling their slot allocations with spot rate cargo after years of being in denial over the existence of this market.
And the collapse of oil prices, which has resulted in bunker costs declining from $600 per tonne to below $250 in less than six months, has given the carriers plenty more wriggle-room to discount rates.
Indeed, given the comments from a CSCL executive in Hamburg during the maiden call of the CSCL Globe – that due to the decline in bunker prices the breakeven point for headhaul cargo was now below $600 per teu – the prospects for the next round of carrier general rate increases due to be implemented at the end of this week do not appear good.
