The world’s largest
cargo carrier the MSC’s “Oscar” is now in full service. It has the capacity to
carry 19,224 standard 20 foot containers. Thirty years ago no vessel was able
to carry more than 5000.
Manufacturers of electronics and mobile phones are shipping
cargo by sea because competition was eroding their profit margins focussing
their attention on cutting delivery costs.
Each 20 foot container can hold 13,000 smart phones with a
transportation cost from China to Europe of 7 pence per unit and a transit time
of approximately 25 days.
Currently there are over 6000 container vessels operating
with a significant number engaged in the East to West trade routes.
China’s economic success remains export driven as illustrated
by the cost of shipping a container. Inward from China to Europe costs around
US$1500 with the reverse journey only commanding a rate of around US$700.
As evidenced by the Japanese shipping company MOL
commissioning 6 vessels capable of carrying 20,000 standard containers traffic
will continue to moving onto the water.
The alternative moving goods by air is very
energy-intensive and the high cost of jet fuel makes air freight too expensive.
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