A long period of low growth combined with an industry race for larger vessels and lower unit costs have combined to cause a significant vessel supply/demand imbalance. These large vessels can only realistically be used on Asia-Europe and, to a lesser extent, on Asia-US West Coast routes as infrastructure restrictions curtail their use on other trades. Their introduction also displaces existing vessels into smaller routes and so vessel sizes have been increasing significantly over the last 5 years.

These larger vessels impact terminal productivity as they require longer container lifting distances due to their larger dimensions. Without changing other operational dynamics, these larger vessels actually reduce overall productivity as well as occupy larger proportions of quay length for longer periods of time.

During the initial period of mega-vessel deployment shipping lines wanted to remain independent and introduced new vessels sporadically as they were completed by shipyards. This led to a significant decrease in efficiency and a reduction in port productivity as larger vessels were occupying more quay wall without bringing in the proportional increase in throughput from consolidation.

In his session, Mr Lai will share his terminal’s experience in operating these mega- vessels, how these mega-vessels change the operating mindset from planning to actual operations as well as their effects on the purchasing of equipment. Mr Lai will also share some solutions in tackling these mega-vessel issues.