Box ship scrapping slows as demand picks up

SIXTY cellular ships accounting for 100,000 TEU have been removed from the fleet since the beginning of the year, far fewer than the 208 vessels of 380,000 TEU scrapped last year.

"The rate of deletions is diminishing due to improved employment prospects and as the fleet has been purged of most over-aged units which are the prime candidates for scrapping," said Paris-based Alphaliner.

"The scrapping rate will likely fall in coming months as the summer peak season boosts demand for tonnage, in spite an influx of expected new capacity. This contrasts with last year's situation, when scrapping peaked in July 2009 in what should have been the traditional peak season," it said.

According to Alphaliner records, the idle fleet has declined to a 15-month-low with 5.3 per cent of the fleet idle, down from a high of 11.7 per cent recorded in December 2009.

(Source: www.schednet.com)