Anticipating growth
JR Shipping focuses on the market for container feeder vessels up to 1.200 TEU (20’ container). Container feeder vessels play an essential role in the worldwide sea transport of containers. The demand for container feeder shipping has increased dramatically since the middle of 2004, resulting in an upswing in charter rates. Compared to the historical average, rates have remained high ever since.
The worldwide sea transport of cargo is dominated by containers. Container shipping has seen a steady growth over the past 30 years. Growing world economies, globalisation, changing trade patterns and ongoing containerisation, will continue to stimulate the container shipping industry. The latest statistics show that 350 million TEU per year is being shipped worldwide, which amounts to 70% of the total of dry bulk shipping. In recent years the market growth has exceeded 10% per year. Container line operators therefore have a growing need for well performing and reliable container feeder vessels to carry out their services.
The increasing demand for container feeder vessels may also be attributed to changes within worldwide container shipping industry. Vessels employed in inter-continental sea transport of containers (‘global liners’) have increased in size to such a degree that the number of ports visited per continent (‘main ports’) is reduced to a minimum. Consequently container line operators use ‘feeders’ for the onward transport to other European ports from main ports like Rotterdam and Hamburg.
Also, ‘door-to-door’ transport within Europe is becoming increasingly important. Most of the prominent liner and ‘door-to-door’ operators are amongst JR Shipping’s clients.
Though shipping markets are cyclical, the market forecasts are favourable for the segments relevant to JR Shipping’s activities. The projected demand for container feeder vessels outstrips the supply of existing and newly built, feeder vessels (up to 1.200 TEU).
JR Shipping meets this demand with a growing fleet of top container vessels.