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United Arab joins the large carriers club
Why are they investing in nine 13,500 TEU ULCC-vessels?
These are exciting times for the United Arab Shipping Company (UASC), a long-term customer of the port of Rotterdam. In April this year UASC took delivery of its first Ultra Large Container Carrier (ULCC), the 13,500 TEU capacity Umm Salal, from South Korea’s Samsung Heavy Industries.
The new vessel is the first in a series of nine A13 class container ships that UASC has on order at SHI.
Umm Salal has initially been deployed within the AEC8 service, which UASC launched in March this year with China Shipping Container Line, CMA CGM and Evergreen, to connect ports in China and Malaysia with ports in northern Europe, including Rotterdam.
Ron Vink, Managing Director, UASC Rotterdam
Ron Vink, managing director of UASC Rotterdam, says: "There is a need for ULCC vessels in the current market, in order to remain competitive in the Asia - Europe market, and Rotterdam is perfectly suited to handling vessels of this size."
“ These are exciting times for the UASC ”
Ron Vink Managing Director, UASC Rotterdam
When the complete fleet of nine A13 vessels is in service next year, UASC will establish a stand-alone Europe-Asia service. This will link Rotterdam with ports in South East Asia and China, with direct calls in the Middle East, the Company´s core market.
Mr Vink observes: "If you want to be competitive as a carrier you have to employ ULCCs, which offer the economies of scale required to reduce teu slot costs. The arrival of these ships will greatly strengthen our position in Rotterdam, and its hinterland, as we will benefit from having lower operational costs. With freight rates still under pressure, all carriers have to get slot costs down."
There are no plans as yet for UASC to transfer services to Rotterdam’s new Maasvlakte 2 facilities as they come onstream from 2013. However, Mr Vink says: "Going to Maasvlakte 2 is of course a possibility. But it is a matter for discussion between ourselves, our partners and the terminal operators in the future."
Another source of comparative strength highlighted by Mr Vink is Rotterdam’s Port Community System. "The Port Community System is a key selling point. This is a very advanced IT system that benefits all logistics partners," he says.
Whatever the future holds, one thing is certain - UASC is committed to the port of Rotterdam, as its main gateway into key North European markets. "Through Rotterdam, we serve not just the Benelux, but also Germany and other inland markets, such as Austria and Switzerland," Mr Vink points out.
"The most important thing for our customers is that at Rotterdam they are free to select whatever transport mode they want to employ," says Mr Vink. "Rotterdam gives them so much choice. Also, as the main hub in Europe, there are so many calls leaving Rotterdam every day for markets all over the world, so customers know they won’t have to wait long for the next connection."
He suggests that Rotterdam’s main strength is its excellent infrastructure and also the unrivalled connections to the hinterland by rail and barge. "These connections are very environmentally friendly, which is what our customers increasingly want. Also Rotterdam is very competitive cost-wise compared to other ports.
For more information about United Arab Shipping Company please visit: www.uasc.net
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