Smaller ocean cargo vessels taken out of circulation

According to the Alphaliner, 59 units of 1,000-2,000 teu have left the fleet this year.

By ·

The 1,000-2,000 twenty-foot equivalent units (TEUs) containership segment has suffered severely during the current demand downturn with a substantial idling of ships and a recent wave of scrappings, reported Alphaliner this week.

According to the Paris-based consultancy, 59 units of 1,000-2,000 teu have left the fleet (as at mid-November) this year. Of this number, 54 units were sold for scrap and five units were de-celled and converted into bulk carriers.

In the same period, 40 newbuidlings of 1,000-2,000 TEU joined the fleet, leaving a net loss of 14 ships in this size segment. Consequently, the 1,000-2,000 TEU cellular fleet has dropped by 1.8% since early January, to 1.8 million TEU. Conversely, only 11 ships have been ordered in this size range since the beginning of this year. The orderbook to existing fleet ratio stands at only 6.3%., which is well below replacement rate.

Although unusually low, this ratio also reflects dim prospects for 1,000-2,000 teu ships, which have been displaced by 2,000-2,700 TEU ships in many instances and are today increasingly confined on short sea trades, niche trades and a few feeder trades with physical constraints.

However, the recent fleet disposals have an obvious positive effect, said Stephen Fletcher, Alphaliner’s commercial director.

“Whereas the total idle ship fleet has been increasing since this summer, the number of 1,000-2,000 TEU ships without employment has decreased over the past two months. Some areas, such as the Caribbeans and North Europe, even became short of such ships for prompt or spot charter, leading some owners to reposition ships from more crowded areas.”


About the Author

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 [email protected]

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!

Article Topics

Ocean Cargo · Ocean Freight · Trade · All Topics
Latest Whitepaper
The View from the New “Single Window”
The single window, officially known as the "International Trade Data System," operates via the Customs and Border Protection (CBP) agency's Automated Commercial Environment (ACE) platform, and serves as a single point of contact for all trade filings.
Download Today!
From the March 2017 Issue
WMS vendors are stepping up to the plate and developing functionalities and solutions that meet the complex needs of today’s companies. Our top analysts take a peek into these developments and discuss the DC of the future and the software that will support it.
5 Supply Chain Trends Happening Now
2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Trucking Regulations & Infrastructure Update
In this session our panel brings shippers up to date on the state of transportation regulations. Discussion will revolve around regulatory reform, aspects of the federal highway bill and what the transportation landscape looks like in the early days of the Trump administration.
Register Today!
EDITORS' PICKS
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...

2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...