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 Patrick Burnson, Executive Editor
November 21, 2012 - LM Editorial

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

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

A recent Wall Street Journal report stated that third-party logistics and freight transportation services provider XPO Logistics shut down seven freight terminals that were part of the Con-way Inc. less-than-truckload (LTL) network, Con-way Freight. Con-way was acquired by XPO for $3 billion last year.

Many transportation/logistic organizations are applying a new wave of robotic process automation (RPA), a “no coding” approach that integrates and automates data-driven activities.

Logistics Management Group News Editor recently caught up with Frank Guenzerodt, president and CEO of Dachser USA, the American arm of global 3PL Dachser, about the company's ongoing expansion efforts into the U.S.

In an effort to help buyers of freight transportation and logistics services to better understand the required best practices in order to be a shipper of choice for their carrier partners, non asset-based third-party logistics (3PL) services provider Transplace said this week it has rolled out a Preferred Shipper Checklist.

For a new facility in Chicago, DHL Global Forwarding converted to electric lift trucks. The result? Better uptime and a cleaner environment.

Article Topics

News · Ocean Freight · Ocean Cargo · Trade · 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 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA