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Displaying items by tag: Top 25 World Container Lines

#Top25boxCo - According to Multimodal, the 14th edition of Dynamar annual Top 25 Container Liner Operators publication has been issued. It offers an exclusive insight into the world’s largest container shipping companies, their history, nature, characters, developments, strategies, relationships and performances.

The report opens with a summary of the Top 25 carriers looking at their operated vessel fleet, capacity, carryings, container box fleets and subsidiaries. Furthermore, this section includes financial results for full year 2015 and the first 9 months of 2016. A rundown of performance and financial parameters for the period 2011/2015 for operators consistently forming the Top 20 is also provided. It concludes with the shares of operated vessel capacity by region of control and by company type.

Dynamar’s latest study offers a most comprehensive overview of the financial results of the globe’s 25 largest operators. For the first time, as a group, they collectively posted a net loss in 2015, this running into hundreds of millions of dollars. Even more monetary horror is to come: for the first 9 months of 2016, the combined net result of twelve reporting lines fell by more than USD 13 billion...!

Little wonder: over the same 9-month period, spot rates quoted for the 10,500 nautical miles Shanghai-Rotterdam leg were USD 618 all-in per TEU on average. This equals less than 6 dollar cents per nautical mile. Quotations ranged between a nadir of USD 205(!) in March, and a zenith of USD 699 in July… which carrier could survive on that?

In January 2015, four East-West Alliances kicked off:

2M - Maersk Line, MSC
CKYHE Alliance - Coscon, Evergreen, Hanjin, “K” Line, Yang Ming
G6 Alliance - APL, Hapag-Lloyd, Hyundai, MOL, NYK, OOCL
Ocean Three - China Shipping, CMA CGM, UASC
Less than one-and-a-half year later, in April/May 2016 already, the relevant carriers announced drastic re-arrangements of their groupings. Taking effect April 2017, these will read:

2M+ - Maersk Line and MSC, plus Hyundai sharing space
Ocean Alliance - CMA CGM/APL, Coscon, Evergreen, OOCL
THE Alliance - Hapag-Lloyd/UASC, Hanjin, “K” Line, MOL, NYK, Yang Ming
All being well and with the permission of the FMC already in their pockets, these three new Alliances will start operations effective 1 April 2017.

It is unprecedented developments outside of the existing alliances having pushed aforementioned changes. All actualised or initiated within the space of a single year (2016), which saw six of the original Top 20 lines go, it concerns:

China Shipping merged into Coscon (February)
Acquisition of APL by CMA CGM (June)
Hanjin’s sad going under (September)
Merger-to-be of UASC into Hapag-Lloyd (1Q2017)
The proposed joint venture between “K” Line, MOL and NYK (September 2017)
Maersk Line’s intended acquisition of Hamburg Süd (late 2017)
In the course of all the above sweeping, powerful changes, smaller liner companies come under great pressure to consider consolidation as well: 2017 promises to become another exciting year!

Concluding the “Top 25 Container Liner Operators (2016)” study is a separate chapter on Alliances, Consortia or similar. Profiles are provided on each of the present and future groupings.

Cost reduction, in the form of larger, less gas guzzling and more efficient ships has been the answer to low rates of the top container liner operators. It started with Maersk Line’s 2006-launched 15,600 TEU E-class, developed and built for the Europe-Far East trade. High volumes; an excellent relationship between time spent at sea versus time in port; capable container terminals: this trade is the ideal route for ULCS to reap the maximum from their economies of scale.

Worried by the Danish company’s lower slot costs eroding their market share, other carriers followed suit in big numbers. By mid-2016, eighteen of the Top 25 lines controlled 100% of all ULCS operating and 94% of the orderbook, representing 366 ships/4.9 million TEU, and 156 vessels/2.7 million TEU, respectively. Capacities range between 10,000 TEU and 21,200 TEU. By the end of 2016, 178 ULCS with an average capacity of 15,300 TEU operated between North Europe and Asia.

A deluge of large newbuildings combined with a faltering market resulting in severe overcapacity inducing a bitter rate war ensuing dramatic losses: it is the price of too many too big ships...

Aware of the overcapacity damage done with their financials turning deep dark red, no carrier ordered any ULCS in 2016. That is to say, almost, as in December IRISL fulfilled an earlier “promise” to go for ULCS as well, ordering an initial 14,500 TEU units.

Cold comfort, but it is not container liner shipping alone immersed in uncertainty. Breakbulk, heavy lift, dry bulk, tankers, non-operating owners, you name it, all main shipping segments are concurrently groaning under a downturn as severe as seldom seen before. It can barely get worse.

In addition to maturation, container shipping also faces the yet largely unknown effects on cargo streams of 3D-printing and robotising facilitating near shoring.

Interestingly, despite all doom and groom, at the very end of 2016 it was reported that shipping industry confidence had hit its highest level in 15 months. That’s the spirit, that typifies shipping!

It may have helped that in the fourth quarter, spot rates in all long haul trades from Shanghai saw a recovery, to positively influence the level of contract rates for the new year. Scrapping has never been as high as 700,000 TEU. Troubles are not, but would the worst be over!?

Ongoing container liner consolidation as so convincingly initiated in 2016 should help addressing all challenges if... the larger companies and Alliances seriously work on eradicating the current excess tonnage while keeping future capacity expansion in check.

And finally: 2006 ended with (ultimately) eight companies less than it started with. No worry, as long as there is worldwide water and trade, there will be 25 largest container liner companies with all of them worth to know everything about them!

Many more topics and subjects than the above are discussed and analysed in the core of the 2016-edition of Dynamar’s “Top 25 Container Liner Operators” which consists of the profiles of each of the individual Top 25 carriers and their affiliated companies. In summary, each profile contains:

An opening page of at-a-glance key details, overviews, indexes and ratios on literally anything container shipping company-relevant, showing the subject’s progression since 2005
A history and corporate background section: how the carrier got to where it is today

Operated containership fleet and orderbook development
Trade lanes and markets served as a vessel operator and as a slot-charterer
Overview of interests in container terminals worldwide
Summary of container-related and other relevant affiliations or activities
Membership of alliances, consortia, conferences and discussion agreements

Concluding the study is a glossary featuring all major, main and regional trade lanes along which the Top 25 are active (as vessel providers) listed by trade and country. All this is complemented by around 145 different tables and another 50 figures of supporting information.

The 2016 edition of the Top 25 Container Liner Operators is immediately available and can be ordered for direct download under the link www.dynamar.com/publications/173

Published in Ports & Shipping

Aquaculture Information

Aquaculture is the farming of animals in the water and has been practised for centuries, with the monks farming fish in the middle ages. More recently the technology has progressed and the aquaculture sector is now producing in the region of 50 thousand tonnes annually and provides a valuable food product as well as much needed employment in many rural areas of Ireland.

A typical fish farm involves keeping fish in pens in the water column, caring for them and supplying them with food so they grow to market size. Or for shellfish, containing them in a specialised unit and allowing them to feed on natural plants and materials in the water column until they reach harvestable size. While farming fish has a lower carbon and water footprint to those of land animals, and a very efficient food fed to weight gain ratio compared to beef, pork or chicken, farming does require protein food sources and produces organic waste which is released into the surrounding waters. Finding sustainable food sources, and reducing the environmental impacts are key challenges facing the sector as it continues to grow.

Salmon is the most popular fish bought by Irish families. In Ireland, most of our salmon is farmed, and along with mussels and oysters, are the main farmed species in the country.

Aquaculture in Ireland

  • Fish and shellfish are farmed in 14 Irish coastal counties.
  • Irish SMEs and families grow salmon, oysters, mussels and other seafood
  • The sector is worth €150m at the farm gate – 80% in export earnings.
  • The industry sustains 1,833 direct jobs in remote rural areas – 80% in the west of Ireland
  • Every full-time job in aquaculture creates 2.27 other jobs locally (Teagasc 2015)
  • Ireland’s marine farms occupy 0.0004% of Ireland’s 17,500Km2 inshore area.
  • 83% of people in coastal areas support the development of fish farming
  • Aquaculture is a strong, sustainable and popular strategic asset for development and job creation (Foodwise 2025, National Strategic Plan, Seafood
  • Operational Programme 2020, FAO, European Commission, European Investment Bank, Harvesting Our Ocean Wealth, Silicon Republic, CEDRA)
    Ireland has led the world in organically certified farmed fish for over 30 years
  • Fish farm workers include people who have spent over two decades in the business to school-leavers intent on becoming third-generation farmers on their family sites.

Irish Aquaculture FAQs

Aquaculture, also known as aquafarming, is the farming of aquatic organisms such as fish, crustaceans, molluscs and aquatic plants, and involves cultivating freshwater and saltwater populations under controlled conditions- in contrast to commercial fishing, which is the harvesting of wild fish. Mariculture refers to aquaculture practiced in marine environments and in underwater habitats. Particular kinds of aquaculture include fish farming, shrimp farming, oyster farming, mariculture, algaculture (such as seaweed farming), and the cultivation of ornamental fish. Particular methods include aquaponics and integrated multi-trophic aquaculture, both of which integrate fish farming and plant farming.

About 580 aquatic species are currently farmed all over the world, according to the UN Food and Agriculture Organisation (FAO), which says it is "practised by both some of the poorest farmers in developing countries and by multinational companies".

Increasing global demand for protein through seafood is driving increasing demand for aquaculture, particularly given the pressures on certain commercially caught wild stocks of fish. The FAO says that "eating fish is part of the cultural tradition of many people and in terms of health benefits, it has an excellent nutritional profile, and "is a good source of protein, fatty acids, vitamins, minerals and essential micronutrients".

Aquaculture now accounts for 50 per cent of the world's fish consumed for food, and is the fastest-growing good sector.

China provides over 60 per cent of the world's farmed fish. In Europe, Norway and Scotland are leading producers of finfish, principally farmed salmon.

For farmed salmon, the feed conversion ratio, which is the measurement of how much feed it takes to produce the protein, is 1.1, as in one pound of feed producing one pound of protein, compared to rates of between 2.2 and 10 for beef, pork and chicken. However, scientists have also pointed out that certain farmed fish and shrimp requiring higher levels of protein and calories in feed compared to chickens, pigs, and cattle.

Tilapia farming which originated in the Middle East and Africa has now become the most profitable business in most countries. Tilapia has become the second most popular seafood after crab, due to which its farming is flourishing. It has entered the list of best selling species like shrimp and salmon.

There are 278 aquaculture production units in Ireland, according to Bord Iascaigh Mhara (BIM) *, producing 38,000 tonnes of finfish and shellfish in 2019 and with a total value of €172 million

There are currently almost 2,000 people directly employed in Irish aquaculture in the Republic, according to BIM.

BIM figures for 2019 recorded farmed salmon at almost 12,000 tonnes, valued at €110 million; rock oysters reached 10,300 tonnes at a value of €44 million; rope mussels at 10,600 tonnes were valued at €7 million; seabed cultured mussels at 4,600 tonnes were valued at €7 million; "other" finfish reached 600 tonnes, valued at €2 million and "other" shellfish reached 300 tonnes, valued at €2 million

Irish aquaculture products are exported to Europe, US and Asia, with salmon exported to France, Germany, Belgium and the US. Oysters are exported to France, with developing sales to markets in Hong Kong and China. France is Ireland's largest export for mussels, while there have been increased sales in the domestic and British markets.

The value of the Irish farmed finfish sector fell by five per cent in volume and seven per cent in value in 2019, mainly due to a fall on salmon production, but this was partially offset by a seven per cent increased in farmed shellfish to a value of 60 million euro. Delays in issuing State licenses have hampered further growth of the sector, according to industry representatives.

Fish and shellfish farmers must be licensed, and must comply with regulations and inspections conducted by the Sea Fisheries Protection Authority and the Marine Institute. Food labelling is a function of the Food Safety Authority of Ireland. There is a long backlog of license approvals in the finfish sector, while the Department of Agriculture, Food and Marine says it is working to reduce the backlog in the shellfish sector.

The department says it is working through the backlog, but notes that an application for a marine finfish aquaculture licence must be accompanied by either an Environmental Impact Statement (EIS) or an Environmental Impact Assessment Report (EIAR). As of October 2020, over two-thirds of applications on hand had an EIS outstanding, it said.

The EU requires member states to have marine spatial plans by 2021, and Ireland has assigned responsibility to the Department of Housing, Planning and Local Government for the National Marine Planning Framework (NMPF). Legislation has been drawn up to underpin this, and to provide a "one stop shop" for marine planning, ranging from fish farms to offshore energy – as in Marine Planning and Development Management Bill. However, the Department of Agriculture, Food and Marine confirmed last year that it intends to retain responsibility for aquaculture and sea-fisheries related development – meaning fish and shellfish farmers won't be able to avail of the "one stop shop" for marine planning.

Fish and shellfish health is a challenge, with naturally occurring blooms, jellyfish and the risk of disease. There are also issues with a perception that the sector causes environmental problems.

The industry has been on a steep learning curve, particularly in finfish farming, since it was hailed as a new future for Irish coastal communities from the 1970s – with the State's Electricity Supply Board being an early pioneer, and tobacco company Carrolls also becoming involved for a time. Nutrient build up, which occurs when there is a high density of fish in one area, waste production and its impact on depleting oxygen in water, creating algal blooms and "dead zones", and farmers' use of antibiotics to prevent disease have all been concerns, and anglers have also been worried about the impact of escaped farmed salmon on wild fish populations. Sea lice from salmon farmers were also blamed for declines in sea trout and wild salmon in Irish estuaries and rivers.

BIM says over 95% of all salmon farmed in Ireland are certified organic. Organically grown salmon are only fed a diet of sustainable organic feed. They are also raised in more spacious pens than traditional farmed salmon. The need to site locations for fish farms further out to sea, using more robust cages for weather, has been recognised by regulatory agencies. There is a move towards land-based aquaculture in Norway to reduce impact on local ecosystems. The industry says that antibiotic use is declining, and it says that "safe and effective vaccinations have since been developed for farmed fish and are now widely used". Many countries are now adopting a more sustainable approach to removing sea lice from salmon, using feeder fish such as wrasse and lumpsucker fish. Ireland's first lumpsucker hatchery was opened in 2015.

BIM says over 95% of all salmon farmed in Ireland are certified organic. Organically grown salmon are only fed a diet of sustainable organic feed. They are also raised in more spacious pens than traditional farmed salmon. The need to site locations for fish farms further out to sea, using more robust cages for weather, has been recognised by regulatory agencies. There is a move towards land-based aquaculture in Norway to reduce impact on local ecosystems. The industry says that antibiotic use is declining, and it says that "safe and effective vaccinations have since been developed for farmed fish and are now widely used". Many countries are now adopting a more sustainable approach to removing sea lice from salmon, using feeder fish such as wrasse and lumpsucker fish. Ireland's first lumpsucker hatchery was opened in 2015.

Yes, as it is considered to have better potential for controlling environmental impacts, but it is expensive. As of October 2020, the department was handling over 20 land-based aquaculture applications.

The Irish Farmers' Association has represented fish and shellfish farmers for many years, with its chief executive Richie Flynn, who died in 2018, tirelessly championing the sector. His successor, Teresa Morrissey, is an equally forceful advocate, having worked previously in the Marine Institute in providing regulatory advice on fish health matters, scientific research on emerging aquatic diseases and management of the National Reference Laboratory for crustacean diseases.

BIM provides training in the national vocational certificate in aquaculture at its National Fisheries College, Castletownbere, Co Cork. It also trains divers to work in the industry. The Institute of Technology Carlow has also developed a higher diploma in aqua business at its campus in Wexford, in collaboration with BIM and IFA Aquaculture, the representative association for fish and shellfish farming.

© Afloat 2020

At A Glance - Irish Aquaculture

  • Fish and shellfish are farmed in 14 Irish coastal counties
  • Salmon is the most popular fish bought by Irish families. 
  • In Ireland, most of our salmon is farmed, and along with mussels and oysters, are the main farmed species in the country.
  • The industry sustains 1,833 direct jobs in remote rural areas – 80% in the west of Ireland
  • Every full-time job in aquaculture creates 2.27 other jobs locally (Teagasc 2015)
  • Ireland’s marine farms occupy 0.0004% of Ireland’s 17,500Km2 inshore area.
  • 83% of people in coastal areas support the development of fish farming

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