The Growing Role of Mega-Ships in International Shipping

The continuous increase in container ship sizes, coupled with technological advancements, has resulted in the development and widespread adoption of mega-ships, also known as ultra-large container vessels (ULCVs). This trend reflects the efforts to meet the growing demands of internal shipping and the global economy.

The Roles of Mega-Ships

These vessels are instrumental in the shipping industry for various reasons.

Bigger Capacity

Mega-ships are continuously evolving. The number of 20-foot containers these vessels can accommodate has increased by 1,500% over the past 50 years. One of the most notable upgrades happened when Maersk launched its E-series in 2006, which can carry 15,000 containers. Since then, other carriers have also ordered massive ships.

The largest mega-ship is the MSC Irina, with a capacity of 24,346 20-foot equivalent units (TEUs). This vessel has fuel-efficient features, including propellers possessing large diameters and a system that creates air bubbles along the hull, decreasing water resistance.

The more containers a ship can carry, the lower the cost per unit. Carriers like CMA-CGM, MSC and Maersk have utilised the strategy of scaling up their capacity to widen the gap between them and their competitors.

Enhanced Environmental Efficiency

Ocean shipping accounts for 2.9% of total greenhouse emissions. As the demand for international transportation increases, trade volumes are expected to triple by 2050. Without additional policy interventions, carbon emissions are set to reach around 1,090 million metric tons by 2035.

Mega-ships are considered more eco-friendly than their smaller counterparts because of reduced transit times, contributing to supply chain optimisation. Modern vessels are also built to fit modern standards of sustainability. More importantly, they sail at slower speeds, which conserves fuel and contributes less to pollution.

Fewer Law Restrictions

National ordinances, international law, carrier organisation regulations and other mandates contribute to what goods are acceptable and prohibited for transport. In principle, restrictions are more apparent in air cargo than ocean freight, including flammable goods, gases, corrosive items and biochemical products.

Bigger Ships, Bigger Problems?

Operating mega-ships has a few drawbacks, many of which are still being addressed by the government and carriers.

Speed

An ocean freighter travelling from China to the U.K. can take 25-60 days, depending on the load, destination and other shipping factors. Sea vessels move much slower than air freight to save fuel and costs. On top of the slow speed, customs delays, port congestion and weather can affect travel time.

Lack of Flexibility

Ships face higher risk when chartering along congested routes, as demonstrated by the blockage in the Suez Canal, which caused problems for the global shipping industry. So far, only European and Asian passages are highly navigable, restricting their usefulness.

Mega-ships could also cause issues for land-side logistics. Due to their enormous size, they can disrupt a steady cargo flow through terminal congestion.

Protection

Mega-ships are more susceptible to damage because they are more vulnerable to movement. They are at a higher risk of losing containers when caught in open seas and storms.

The size can contribute to a string of container stack collapses and damage. In March 2022, Dyros lost around 90 containers, and 100 were damaged due to rough weather in the Northern Pacific.

Increasing Costs

Mitigating the impacts of untimely shipments can result in increased business costs. In addition, ports must conduct massive infrastructure upgrades to handle bigger ships. This means dredging the seafloor to ensure the safety of vessels with deeper drafts. Canals and straits would also require expansion to accommodate a new class of mega-ships.

Shipowners can manage expenses by factoring in potential transit-related delays when evaluating suppliers. For instance, they could provide greater weight for those based on the same continent over those residing in more distant countries.

Natural Hazards

Around one-third of seaports worldwide are in areas prone to severe tropical cyclones. Additionally, fires and explosions from misdeclared containers or improper storage also heighten the risk of accidents on board.

How to Ensure Safe International Shipments

Today’s mega-ships must comply with standard measures to mitigate the risk of potential accidents.

Conduct Proper Hull Inspection

Annual hull inspections provide companies, suppliers and workforces peace of mind that the ship is entirely safe. Around 2,703 shipping accidents happened in 2021, and 40% were caused by physical damage. Minor issues can significantly impact the entire vessel if left unchecked.

Ensure Container Safety

A total of 661 containers were lost at sea in 2022 — less than 1% of the 250 million containers shipped yearly. To ensure lost container numbers continue to drop, all parties involved in the supply chain should fulfil their responsibilities. Here’s a simple breakdown of duties to ensure container safety:

• Container operators should ensure containers are clean, free from pest contamination and comply with standards.
• Shippers, freight forwarders and packers are responsible for properly packing, bracing and stowing containers. They are also responsible for declaring accurate information about goods.
• Stevedores and port terminals should handle and stow containers properly based on their verified gross mass (VGM), destination and content.
• Mega-ship operators and other vessel-sharing partners are responsible for planning and securing a safe stowage plan.

Update Navigational Data

There’s also a need to update bathymetric and hydrographic data. More mega-ships are entering new waters, and governments and ports must provide the latest survey information to ensure safer navigation and a collaborative relationship among vessel operators.

Navigate Global Trade With Mega-Ships

Mega-ships play a significant role in international shipping operations. Despite their importance, challenges such as optimising vessel capacity, upgrading port infrastructure and mitigating the risks of natural hazards persist. Effective collaboration between governments, cargo companies and other parties is essential to ensure mega-ships fulfil their roles effectively.

Author Bio

Jack Shaw, senior editor of Modded, is a respected authority on industry and business strategies. With a deep understanding of supply chains and a talent for breaking down complex concepts into easily digestible insights, Jack’s articles offer a fresh perspective on current trends and processes.

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