Subscribe to our free, weekly email newsletter!


Ocean Cargo: Shipping analysts say vessel scrapping has declined

By Patrick Burnson, Executive Editor
July 07, 2010

During the first six months of 2010, the active containership capacity has risen by 15.3 percent, jumping from 11.55 million twenty-foot equivalent units (TEU) on January 1 to 13.32 million TEU at the end of June, according to figures released by Alphaliner, a Paris-based consultancy.


The 178 million TEU increase includes new ship deliveries (0.74 million TEU) and the reactivation of idle ships (1.16 million TEU) while 0.12 million TEU of cellular capacity was removed through scrapping and conversions. The total cellular fleet (active and idle) has reached 13.67 million TEU, up from 13.06 million TEU at the beginning of January.

Despite the influx of new buildings, the idle capacity dropped from 1.51 million TEU at January 1 to 0.35 million TEU end June. According to Alphaliner analysts, this was largely due to the higher-than-expected recovery in demand in the first half of the year and to the impact of “Extra Slow Steaming,” which has absorbed an additional 0.32 million TEU in 6 months.

“The pace of scrapping has slowed down considerably since last year’s highs” said an analyst. The number of container vessels scrapped in the first six months of this year has reached 111,000 TEU.

He added that another 8,500 TEU were removed through conversions of cellular ships into other ship types (bulk carriers and sheep carriers).

“All major carriers saw their active capacity increase in the last six months,” stated Alphaliner. “NYK was the only carrier in the Top 20 to have recorded a decrease in active capacity as it embarks on its new strategy of reducing its exposure to the liner trades.”

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

When it comes to Congress actually getting its act together on a new long-term federal transportation bill, things remain as status quo as it gets, with the big takeaway being nothing really ever gets done, when it comes to passing a badly overdue and needed bill, rather than these band-aid extensions Congress keeps signing off on.

Truckload and intermodal pricing was up on an annual basis, according to the December edition of the Truckload and Intermodal Cost Indexes from Cass Information Systems and Avondale Partners.

While the official numbers won’t be issued until early February in its quarterly Market Trends & Statistics report, preliminary data for the fourth quarter and full-year 2014 intermodal output from the Intermodal Association of North America (IANA) indicates that annual growth was intact.

Almost all companies today are aware of their labor or material costs... but what about energy consumption? It all comes down to having the energy data needed to determine what actions you must take to improve. The payoff is worth it, as insight into energy data allows you to make more valuable, relevant operating decisions.

With lower energy prices sparking domestic economic gains, coupled with solid manufacturing and industrial production activity, improving jobs numbers, and a GDP number that shows progress, there is, or there should be, much to be enthused about when it comes to the economy and the economic recovery, which has been raised and discussed and dissected from basically every angle possible, it seems. But that enthusiasm regarding the economy needs to be tempered, because big headline themes seldom tell the full story at all really.

Article Topics

News · Ocean Freight · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA