Lay-ups at 549,000 TEU, a million TEU back to work this year

THE idle containership fleet has dropped to 549,000 TEU, down from a high of 1,522,000 TEU in December 2009, resulting in a shortage of ships above 4,000 TEU, according to Alphaliner.

"New services launched for the summer peak season are now rapidly absorbing idle ships over 4,000 TEU, and this is expected to continue during June. The idle fleet is expected to fall to 450,000 TEU by the end of June," it said.

"The reduction in idled tonnage is all the more remarkable as it comes on the back of 1.12 million TEU of newbuildings delivered over the last 12 months. There are, however, some 30 additional newbuildings with total capacity of 270,000 TEU which are already completed and ready to be delivered as soon as their owners solve financing issues."

Alphaliner predicts that the level of idling will increase at the end of summer owing to seasonal demand reduction and further newbuilding deliveries. Also, the euro's fall against the Asian currencies is expected to have a negative effect on Asia-Europe volumes.

"The idle tonnage is forecast to reach one million TEU by the end of the year," predicts Alphaliner.

The rapid fall is attributed large scale "slow steaming" and rising demand for container shipping services sparking demand for ships above 5,000 TEU.

Rates for 4,000-TEU ships hit US$20,000 per day in early May and are said to be holding firm with supply remaining tight in the panamax sector. But charter rates for 2,000-3,000 TEU ships face difficulties because of oversupply with 9.3 per cent of vessels in this range remaining idle.

(Source: www.schednet.com )