Record on the world's oceans: Asia-Europe container capacity to historic high

Record on the world's oceans: Asia-Europe container capacity to historic high

The fleet on the crucial trade route between Asia and Europe is larger than ever. For the first time in history, weekly capacity has passed the 520,000 teu (standard containers) mark.

The massive increase is the result of a wave of newly built ships that have been delivered in recent years, while shipping lines have sent hardly any old ships to the scrapyard. Although trade continues, analysts have long warned of the consequences of this “fleet explosion”: a looming overcapacity that could put pressure on rates.

The new balance of power

The market is dominated by four major blocks, with the Ocean Alliance being the absolute leader with a 32.4% market share. The newly formed Gemini Alliance follows at a distance with 24%.

The role of the 'niche players'

Excluding these and other giants, only 5.6% of the market remains. This segment includes interesting players such as supermarket chain Lidl’s in-house Shipping line and Chinese firms experimenting with shorter routes via the North Pole.
Despite the record figures, the shadow of overcapacity looms over the sector. The question is how long the market can continue to absorb this influx of new container ships before the balance tips irrevocably.