Wednesday , April 21 2021
Home / Business / Why the world’s container ships grew so big

Why the world’s container ships grew so big

The traffic jam at the Suez Canal will soon begin easing, but behemoth container ships such as the one that blocked that crucial passageway for almost a week and caused headaches for shippers around the world aren’t going anywhere.

Global supply chains were already under pressure when the Ever Given, a ship longer than the height of the Empire State Building and capable of carrying furnishings for 20,000 apartments, wedged itself between the banks of the Suez Canal last week. It was freed earlier this week, but it left behind “disruptions and backlogs in global shipping that could take weeks, possibly months, to unravel,” according to A.P. Moller-Maersk, the world’s largest shipping company.

The Ever Given caused global shipping chaos that could take months to resolve when it got stuck in the Suez Canal.

The Ever Given caused global shipping chaos that could take months to resolve when it got stuck in the Suez Canal. Credit:Suez Canal Authority via AP

The crisis was short, but it was also years in the making.

For decades, shipping lines have been making bigger and bigger vessels, driven by an expanding global appetite for electronics, clothes, toys and other goods. The growth in ship size, which sped up in recent years, often made economic sense: Bigger vessels are generally cheaper to build and operate on a per-container basis. But the largest ships can come with their own set of problems, not only for the canals and ports that have to handle them, but for the companies that build them.

“They did what they thought was most efficient for themselves — make the ships big — and they didn’t pay much attention at all to the rest of the world,” said Marc Levinson, an economist and author of Outside the Box a history of globalisation. “But it turns out that these really big ships are not as efficient as the shipping lines had imagined.”

Despite the risks they pose, however, massive vessels still dominate global shipping. According to Alphaliner, a shipping-data firm, the global fleet of container ships includes 133 of the largest ship type — those that can carry 18,000 to 24,000 containers. Another 53 ships are on order.

Loading

The world’s first commercially successful container trip took place in 1956 aboard a converted steamship, which transported a few dozen containers from New Jersey to Texas. The industry has grown steadily in the decades since, but as global trade accelerated in the 1980s, so did the growth of the shipping industry — and ship size.

In that decade, the average capacity of a container ship grew by 28 per cent, according to the International Transport Forum, a unit of the Organisation for Economic Cooperation and Development. Container-ship capacity grew again by 36 per cent in the 1990s. Then, in 2006, Maersk introduced a massive new vessel, the Emma Maersk, which could hold about 15,000 containers, almost 70 per cent more than any other vessel.

About admin

Check Also

ASX set to dive back below 7000; Iron ore surges

The boom Netflix enjoyed during the pandemic came to a dramatic halt overnight when dismal …