Containerized cargo capacity continues to shrink

PARIS—Approximately 185,000 TEU (twenty-foot equivalent units) have been scrapped in the first half of the year, said industry analysts.

 

And according to AXS-Alphaliner, this may only be the beginning of a dramatic downsizing of containerized shipping. By year’s end, said analysts, more than 300,000 TEU of vessel capacity may be gone.

 

MOL, which was rumored to be ditching its container operations altogether a few weeks ago, figured prominently in the AXS report:

 

“MOL has been one of the most active in the market with eight ships scrapped so far this year with a total capacity of 24,000 TEU.”

 

Spokesmen for the Japanese carrier were unavailable for comment, but LM was assured that MOL is still committed to its containerized operations.

Analysts noted, however, that among those vessels scrapped were three that were less than 20 years old -- MOL Ingenuity (built in 1992, 4,180 TEU), MOL Thames (1990, 3,733 TEU) and MOL Columbus (1991, 2,852 TEU).

 

At the same time, MSC had consigned ten of its vessels to the scrap yard for a capacity of 16,000 TEU, as it disposed older tonnage. According to AXS, MSC had the largest proportion of vessels 25 years or older, but generally keeps them in circulation longer that other carriers to reduce expenses on certain trade lanes.

 

Evergreen Line, too, has announced the scrapping of approximately 30 vessels built in the 1980s. If that is indeed the case, it means the Taiwanese carrier will be losing 14 percent of its current fleet with no new ships on order.

 

Though analysts expect a slow down in scrapping during the third quarter as carriers prepare for peak season, the volume of abandoned capacity is of historic proportions. Analysts said that current figures reflect “10 times the norm” of annual scrappage.

 

Of the 94 vessels scrapped so far, 58 percent of capacity was carrier-owned and 42 percent from non-operating owners.

 

(Source: Ocean Logistics)