Containership scrapping falls to seven-year low in 2018
Scrapping of containerships sank to the lowest level in seven years in 2018, new data shows.
Total capacity of 111,200 teu was taken out of the market last year, well down on the 427,000 teu demolished in 2017, according to Alphaliner.
The 2018 demolition tally included only 10 vessels in the 3,000 to 6,000 teu range.
Bulker recovery sees overall scrapping activity fall in 2018The figure fell short of the 1.3 million teu in new capacity which rolled out of the world’s shipyards in 2018, the researcher says.
This led to a 5.7% growth in the global container fleet in 2018, which reached 22.3 million teu at the end of the year.
“Despite some initial optimism, overcapacity continued to plague the boxship sector, and the lingering overhang of tonnage could not be cleared after all,” Alphaliner said.
The slowdown in scrapping came during what was a generally weak year for container freight rates, before a rally late in the year triggered by a deadline for US tariffs on Chinese goods.
“It remains to be seen if the stronger freight rates will hold in 2019, with significant uncertainty over the impact of the Sino-US trade war and the slower growth in global trade volumes,” Alphaliner said.
“Container shipping could be in for another ‘interesting’ year in 2019, as the ongoing struggle to balance supply with demand continues to drive both the freight and the charter markets.”
