5.3pc of world's containership fleet of 500-TEU plus ships in lay-up
WORLDWIDE, the number of idle containerships with a capacity greater than 500 TEU has risen to 296 units for an aggregate 862,000 TEU as of February 25 or 5.3 per cent of total operating capacity, reports Alphaliner.
The bad news is that even with 753,000 TEU out of the picture, record newbuilding deliveries combined with weak global trading conditions are likely to eclipse gains made through lay-ups and scrapping, thus capacity will outstrip demand and put pressure on freight rates.
The rise in idle capacity in February was attributed to the withdrawal of various sailings over the post-Chinese New Year period. It said 11 units of over 8,000 TEU were consequently unemployed, and three of them joined the idle fleet over the last month.
All the idle ships in the largest category are carrier controlled, but they are expected to be put back into service in the next two months as carriers prepare for the summer season.
The number of idle ships, ranging from 5,000 to 7,500 TEU, rose by seven units in the first half of February with new idlings due to shelving sailings. Of the 23 idle units in this segment, 16 units are carrier-controlled and seven units are charter-free ships from non-operating owners, the report said.
But chartering activity was said to have "contained" the increase, with MSC seeking such ships for its network. Fifty new charters were finalised between mid-December and the end of February at low rates.
Ships in the 3,000-5,000 TEU range "remain the more depressed as the unemployment rate reaches 8.5 per cent and shows no sign of improvement despite active scrapping, with 14 ships delivered to scrappers during the first two months of the year", the report said.
"This did not prevent the number of idle ships from rising, due in particular to a stream of redeliveries of chartered panamaxes reaching the end of their commitments.
"The number of idle ships of 2,000-3,000 TEU continues to decrease for the 10th consecutive week, down from a seasonal peak at 72 ships in mid-December to 63 ships, despite a certain reluctance to sell ships of this size for scrap. Only two over-aged ships of 29-30 years were beached," the report said.
WORLDWIDE, the number of idle containerships with a capacity greater than 500 TEU has risen to 296 units for an aggregate 862,000 TEU as of February 25 or 5.3 per cent of total operating capacity, reports Alphaliner.
The bad news is that even with 753,000 TEU out of the picture, record newbuilding deliveries combined with weak global trading conditions are likely to eclipse gains made through lay-ups and scrapping, thus capacity will outstrip demand and put pressure on freight rates.
The rise in idle capacity in February was attributed to the withdrawal of various sailings over the post-Chinese New Year period. It said 11 units of over 8,000 TEU were consequently unemployed, and three of them joined the idle fleet over the last month.
All the idle ships in the largest category are carrier controlled, but they are expected to be put back into service in the next two months as carriers prepare for the summer season.
The number of idle ships, ranging from 5,000 to 7,500 TEU, rose by seven units in the first half of February with new idlings due to shelving sailings. Of the 23 idle units in this segment, 16 units are carrier-controlled and seven units are charter-free ships from non-operating owners, the report said.
But chartering activity was said to have "contained" the increase, with MSC seeking such ships for its network. Fifty new charters were finalised between mid-December and the end of February at low rates.
Ships in the 3,000-5,000 TEU range "remain the more depressed as the unemployment rate reaches 8.5 per cent and shows no sign of improvement despite active scrapping, with 14 ships delivered to scrappers during the first two months of the year", the report said.
"This did not prevent the number of idle ships from rising, due in particular to a stream of redeliveries of chartered panamaxes reaching the end of their commitments.
"The number of idle ships of 2,000-3,000 TEU continues to decrease for the 10th consecutive week, down from a seasonal peak at 72 ships in mid-December to 63 ships, despite a certain reluctance to sell ships of this size for scrap. Only two over-aged ships of 29-30 years were beached," the report said.