Megaships: Overcapacity vs. Efficiency

As shipping companies continue to evolve, they are constantly looking for ways to save money. This is where the debate between overcapacity vs. efficiency continues to rise in the discussion. A purchase of a megaship for a San Francisco shipping container company is a big move, especially with seemingly low demand and an increase of sharing exports and imports between major shipping companies. There is a rising trend of filling megaships to overcapacity instead of sending out a few smaller ships to get the job done. But, is this filling ships to their brim efficient?

Global Capacity
As more megaships are built and introduced to the seas the ability to export around the world increases. Demand has recently seen a slow rise, while global capacity has expanded immensely with the introduction of megaships. To reduce shipping costs, many shipping companies have turned to overcapacity of ships to meet their demands instead of sending out a variety of smaller ships. But, is sending out fewer ships at overcapacity as efficient as sending out more ships that have lower capacity?

As megaships are constructed and put out to sea, they have been optimized to save on a variety of costs for their shipping companies. One of the major costs to shipping companies is fuel. Depending on the speed of ships during transportation they can burn through hundreds of gallons of fuel, providing the business with a hefty fee along the way. Megaships have been designed to save on fuel, aiding in saving shipping companies money and making the investment in theses megaships worth the purchase.

The savings on fuel also help the speed of shipping move along a bit faster, depending on oil prices. When oil prices are high, maritime transport captains have been told to sail slower to save on fuel, and when the prices are low, it’s full steam ahead! This isn’t necessarily the case with megaships; they can continue on their routes at a consistent pace since fuel has fallen to the wayside as a major factor when shipping efficiently.

As the debate continues and demand rises and falls, Norcal shipping companies will have to continue the discussion of overcapacity vs. efficiency. In the short run it seems that overcapacity of megaships appears to be the right move for many shipping companies at this time, but moving into the future, keeping in mind inevitable shifts in demand will indeed show whether overcapacity is efficient or inefficient.

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