Small container ships welcome opportunities

申佳液压


Release time:

2023-06-26

With the continuous development of global trade, the ability to sustain business has become a means of survival for the most competitive companies in the world. For consolidation companies, the stronger their competitive advantage, the more they can meet customer needs, which may provide opportunities for smaller container ships.

Small container ships welcome opportunities

With the continuous development of global trade, the ability to sustain business has become a means of survival for the most competitive companies in the world. For consolidation companies, the stronger their competitive advantage, the more they can meet customer needs, which may provide opportunities for smaller container ships.

In the past, these 1000-499TEU container ships laid the foundation for the modern container ship market. After larger container ships and the economies of scale they provided became the focus of the market, small container ships quickly lost their appeal. Now, after the opening and operation of the new Panama Canal, small container ships no longer have their main advantages. Many people believe that these container ships may be slowly dismantled until they disappear completely in the future.

However, the fate of small container ships may not be as terrifying as imagined. Due to the fact that large consolidation companies and ultra large container ships mainly serve global large port hubs, small container ships still have their flexibility advantages and focus on more niche transactions.

Once the container ship is unloaded from the ship at the delivery port, the logistics cost for the end customer does not end as a result. Usually, container ships use trucks or trains for long-distance inland transportation, which is often very expensive. Especially in container ports, this series of huge demands may often lead to skyrocketing freight rates.

In this regard, using smaller container ships for transportation can sometimes become a cost saving solution. The feeder transportation provided by these ships and the smaller alternative ports they call on may make the final logistics cost of freight more affordable.

At the same time, small container ships can also provide better services for niche arbitrage when transporting goods such as sugar, waste, or petrochemical products. In this case, using smaller container ships can enable goods to be delivered to designated ports more accurately and on time without waiting for regular liner services.

However, such opportunities are usually not too frequent and require advance booking. Therefore, smaller container ships remain an important part of the consolidation supply chain.