Mega container ships and shipping alliances

• Main Author: Wu, Guoqin
• Other Authors: Tan Kim Hock
• Format: Final Year Project
• Language: English
• Published: 2017
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/71711
• Institution: Nanyang Technological University

In recent years, container ships have been growing bigger and bigger, with capacities going beyond 18,000 TEUs. The main driver of this trend has been to capitalize on the economies of scale these mega-container ships can bring. However, with the current state of affairs going on in the world, the commercial viability of these mega-container ships is being put into question. This paper seeks to first consider the intended objective of mega-container ships, that is, the economies of scale and other possible reasons why shipping players jumped onto this bandwagon of building mega ships a few years ago. This will be contrasted with some costs or downsides of mega container ships to give a comprehensive understanding of this phenomenon. The paper will then look at how the mega ships are faring under the current economic conditions today, particularly with a focus on the alliance landscape in the liner industry. Last but not least, the paper will conclude with an outlook for the future of the trend of mega container ships, as to its sustainability and hopefully propose an optimal size of container ships, if any; as well as the proposal of conditions or courses of actions that must take place in order to revive the mega container ships, if not, the shipping industry as a whole.