Ocean Cargo: Shipping analysts say vessel scrapping has declined

image
By Patrick Burnson, Executive Editor
July 07, 2010 - LM Editorial

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

Seasonally-adjusted (SA) for-hire truck tonnage in November was up 3.5 percent compared to October, which was up 0.5 percent over September at 136.8 (2000=100), marking the highest SA on record.

UPS said that through this acquisition it will augment its healthcare expertise and network in Europe, specifically in the fast growing healthcare markets in Central and Eastern Europe.

Carloads were up 12.1 percent at 312,271, and intermodal at 280,337 containers and trailers saw a 4.5 percent annual gain.

Total November POLB volumes were up 2.1 percent year-over-year at 581,514 TEU, and POLA volumes in November decreased 3 percent compared to November 2013 at 663,346 TEU.

When railroads are doing business with a larger than large customer like UPS, it stands to reason, it can often be the best, and worst, of both worlds, depending on how things are going. That was one of the main takeaways from a presentation by UPS Vice President of Corporate Transportation Services Ken Buenker at this year’s RailTrends conference in New York.

Article Topics

News · Ocean Freight · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

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