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

Carload volume headed up 4.3 percent to 298,376, and intermodal units, at 273,376 containers and trailers were up 4.8 percent annually.

In light on various service-related freight railroad service issues, the Department of Transportation’s Surface Transportation Board (STB) recently announced it is now requiring Class I railroads to publicly file weekly data reports on service performance. These weekly reports are slated to begin on October 22.

According to its data, spot market volume for the month of September was up 32 percent on an annual basis and set a new record for the 14th straight month, with gains for each of the three equipment categories it tracks, including load availability for: dry vans up 42 percent; refrigerated (reefer) up 24 percent; and flatbed volume up 46 percent.

FedEx Freight and Con-way Freight, two of the largest non-union LTL carriers in the nation, are battling organizing efforts by the Teamsters union in a closely watched unionization effort.

With the holiday shopping set to gear up in a few weeks, it looks like the retail sector could use a seasonal spark based on declining retail sales in September, according to data issued by the United States Department of Commerce and the National Retail Federation (NRF).

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