RACE TO INVEST IN EXPANDING THE MARITIME TRANSPORT FLEET
Numerous maritime transport enterprises are planning to expand their fleets with various types, from container ships, bulk carriers to tankers, to enhance their competitive advantage and consolidate market share.
Enterprises Rushing to Invest in New Ships
According to Transport Newspaper, many maritime transport enterprises have been planning to expand their fleets. One of the enterprises with the largest container fleet in Vietnam, Hai An Transport and Stevedoring Joint Stock Company, has completed the construction of 4 new container ships with a carrying capacity of nearly 1,800 TEU each and has purchased additional ships. As of November 2024, the company owns and operates 16 ships with a total capacity of about 26,500 TEU.
In 2025, the maritime transport market will continue to experience unpredictable developments.
Vietnam Maritime Corporation (VIMC) also intends to continue investing in new ships or purchasing fuel-efficient, environmentally friendly old ships. At the same time, it is pushing for the liquidation of old ships with high ages, low operational efficiency, and non-compliance with IMO environmental requirements.
Similarly, Vinaship Joint Stock Company is planning to expand its fleet. In 2024, the company invested in a bulk carrier with a deadweight of 28,189 DWT.
Not to be left out of the investment race, Vietnam Sea Transport Corporation (Vosco) will welcome two new ships in the first quarter of 2025. At the end of 2024, Vosco also invested in purchasing two Supramax bulk carriers (around 50,000-60,000 tons).
Mr. Dang Hong Truong, Deputy General Director of Vosco, stated that currently, ship prices are at a suitable level. Recently, the enterprise has liquidated several old ships that did not meet business needs and emission reduction requirements.
Mr. Truong noted that domestic transportation demand is not increasing dramatically, so the transport market is relatively stable. In the intra-Asian market, transport demand remains high. However, increasing environmental requirements are making it necessary to invest in new fuel-efficient ships that meet international conventions to continue operating effectively.
“Replacing the entire fleet with newly constructed ships is very costly, and not all enterprises have the potential,” Mr. Truong said, adding that enterprises without sufficient resources will continue to operate older ships.
Freight Rates Slightly Decrease
According to research by PV, at the end of January 2025, data from the independent maritime research center Drewry showed that container freight rates have slightly decreased. The Drewry WCI composite index decreased by 2% to $3,364 per 40-foot container, 137% higher than the average of $1,420 in 2019 (pre-pandemic).
Currently, the freight market has cooled down significantly compared to mid-2024, but it can still generate high profits for enterprises. Freight rates for ships sailing around the Cape of Good Hope from Asia to Northern Europe range from $4,000 to $5,000 per 40-foot container.
However, experts assess that the current market has not entirely returned to normal.
2025 is expected to be a year with many influencing factors, making the market unpredictable. In the first quarter of 2025, maritime transport is expected to still benefit from global political conflicts.
Tensions in the Red Sea have forced ships to sail around the Cape of Good Hope, making the journey longer and freight rates higher. Additionally, increasingly stringent emission controls on ships in many regions are causing some old ships to slow down, potentially creating a temporary shortage of ships.
There Will Be Price Competition
According to Seatrade Maritime, fleet growth is expected to slow down this year to 6%. Additionally, President Donald Trump’s tax plan, threats of port strikes in the US, and changes in shipping alliances’ structures may affect the maritime transport market.
The restructuring of shipping alliances could lead to reduced shipping rates. Mr. Pham Anh Tuan, General Director of Portcoast Marine Engineering and Design Consulting Joint Stock Company, said that new alliances could have competitive strategies to attract cargo and gain market share and could offer new services with more competitive prices.
“Price competition will be better for the market,” Mr. Tuan said, noting that this could also increase costs.
Specifically, when forming new alliances, shipping companies may adjust surcharges to compensate for the restructuring process. This will affect Vietnamese import and export enterprises as most imports and exports depend on foreign shipping companies.
According to observers, global developments may affect Vietnamese shipowners’ production and business activities, but the impact is not significant as Vietnam’s maritime transport market share is still very small. Currently, Vietnamese enterprises mainly transport domestic goods and open some intra-Asian routes.
Source: https://www.baogiaothong.vn/chay-dua-dau-tu-mo-rong-doi-tau-van-tai-bien-192250204125217432.htm
