25
2021
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10
OPPORTUNITIES FOR SMALL CONTAINER SHIPS
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With the continuous development of globalized trade, the ability to sustain operations has become the most competitive means of survival for companies worldwide.
With the continuous development of globalized trade, the ability to sustain operations has become the most competitive means of survival for companies worldwide. For shipping companies, the stronger the ability to meet customer demands, the greater their competitive advantage. This situation may present opportunities for smaller container ships (ship types, shipyards, buying and selling).
In the past, container ships with capacities ranging from 1000 to 4999 TEU laid the foundation for the modern container ship market. However, as larger container ships and the economies of scale they offer became the market focus, small container ships quickly lost their allure. Now, after the opening of the new Panama Canal, small container ships no longer possess their primary advantages, and many believe that these ships may slowly be dismantled until they disappear entirely.
However, the fate of small container ships may not be as dire as imagined. Since large shipping companies and ultra-large container ships primarily serve global major port hubs, small container ships still maintain their flexibility and focus on more niche transactions.
When container ships are unloaded from the ship at the delivery port, the logistics costs for end customers do not end there. Typically, container ships use trucks or trains for long-distance inland transportation, which can be quite expensive. This is especially true in container ports, where this substantial demand may often cause freight rates to skyrocket.
In response to this, transporting goods with smaller container ships can sometimes be a cost-saving solution. These vessels provide feeder services and call at smaller alternative ports, potentially resulting in lower overall logistics costs.
At the same time, small container ships can offer better services for niche arbitrage when transporting commodities such as sugar, waste, or petrochemical products. In such cases, using smaller container ships allows goods to be delivered more precisely and on time to designated ports without waiting for regular liner services.
However, these opportunities may not arise too frequently and require advance booking. Therefore, small container ships remain a crucial part of the shipping supply chain.
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