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Business

Supersized ships are creating a cargo crisis

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Business

Supersized ships are creating a cargo crisis

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COMING UP:Supersized ships are creating a cargo crisis

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00:00:02
>> In the global shipping industry, bigger isn't always better. At more than 1,300 feet, the Majestic Maersk is longer than an aircraft carrier, and just five years ago it was the joint largest container ship on earth. But today, it's not even in the top ten. Reuter's Brenda Go visited the Majestic in Shanghai.
00:00:20
She says the competition to super size is undermining the industry.>> These mega ships have been a double edged sword. On one hand, they represent some of the best technology that the industry has to offer. But on the other hand, they have created a problem for both ports and shipping lines alike.
00:00:36
Some ports around the world are too small to accommodate them and numerous invested in expensive expansions. Also, the industry is facing a problem of overcapacity. Part of which has been blamed for the recent collapse of South Korean shipping line, Hanjin Shipping.>> Today, there are 45 vessels as big as the Majestic, and dozens more being built.
00:00:54
But analyst say the world doesn’t need more mega ships right now, it already has more containers than cargo companies can fill. For shippers, that’s bad news for the bottom line. But it doesn’t mean they’re changing their strategy.>> The big question is, will these companies stop building? But the consensus out there seems to be, probably not.
00:01:12
Because these big ships are the pride of every shipping company. It represents the best technology, it represents the ability to finance such ships.>> That's echoed by the captain, Dick Danielson.>> If you're gonna be a captain and the company asks you, do you want to be on our biggest ship in the fleet that everybody will be proud?
00:01:33
If they don't admit it, then I think they'd be lying.>> Danielson hopes he'll be getting behind the wheel of an even bigger ship before he retires.