Ships

Total 51 Posts

Ships

Aging containership fleet has not driven an increase in vessel scrapping

The average age of the containership fleet currently stands at 13.8 years, although it drops to 11.1 years if calculated on a teu-weighted basis due to younger age of the larger ships. Amongst the Top 15 carriers, MSC has the oldest fleet with an average age of 16.8 years while Maersk has the oldest fleet on teu-weighted terms at 12.8 years. Despite the aging fleet, carriers have been slow in scrapping their older tonnage, with just 163,000 teu scrapped year to date compared to new deliveries

Ships

No Signs of More Idling

Carriers have made no headway in controlling surplus capacity, in sharp contrast to the same period last year when the idled fleet rose sharply through November. This time, idled capacity peaked at only 400,000 teu in October but has dropped to just 187,000 teu currently with most of the capacity withdrawn returning after brief intermissions. Even the rise in ships in drydock in October has started to reverse, with the total capacity in drydock falling to 800,000 teu after its recent peak. Chi

Ships

Global Fleet Top 28m, Another 9% Growth Next 12 Months

The global containership fleet has passed 28m teu last week, with total new ship deliveries since the start of this year reaching 1.94m teu. More than 1 new ship has been delivered each day since June this year, with the same pace to continue through the next 12 months. Carriers are facing a difficult time maintaining recent freight rate gains in the face of the capacity influx, with vessel scrapping and idling remaining at very low levels. The freight rates (SCFIS) were down between 80% and 9

Markets

Idles Up, Charter Rates Down

Charter rates are seeing sharper drops with the start of the winter slack season further pushing down market sentiment while charter periods are also significantly shortened with more flexible delivery periods of 1-6 months being reported. Idle tonnage is starting to build up again but the pace of idling is still slower than last year, with most of the larger ships due to return to service by November. However, the build up of surplus tonnage is starting to bite with even MSC forced to idle

Ships

Idled Capacity Inching Up

The idle fleet increased slightly to 53 ships for 166,936 teu as at 1 October 2023, and will increase further over the coming week as the blank sailing programs to be implemented in October will leave some ships without employment albeit only temporarily. The 23,656 teu MSC MINA has been idle since 24 September and is currently without assignment through October, with MSC also sending more ships for scrubber retrofits over the past week. However, the idled fleet is not expected to match the sha

Ships

Ships slated for scrapping sold for further trading

The Abrao Group of India has acquired its first ship, taking over the 1,662 teu WAN HAI 267 that has been renamed ABRAO COCHIN. The ship is currently at Qingdao and is expected to be used for trading in the India. The ship is one of 6 units of the 1,662 teu Wan Hai 260 series built in 2001-2002 in Shin Kurushima that were originally slated for scrapping by Wan Hai. However, there has been strong buying interest for further trading, with the first ship WAN HAI 261 sold to Chinese interests in Ju

Fixtures

Charter Rates Tumbled for Ships Below 5,000 TEU

Charter rates for ships below 5,000 teu have tumbled with an increasing pool of redelivered ships and relets while charter periods have also shortened with carriers unwilling to commit to longer periods in a slowing market. Rates for ships above 5,000 teu have remained relatively resilient but this is only due to the limited number of candidates available in the market. Zim continues to shed its surplus tonnage, with the 4,252 teu VOLANS redelivered 10 months early and retaken by Hapag-Lloyd at

Charter

Charter Rates Continued to Decline

Charter rates continued to slide for the smaller sizes, with prompt tonnage readily available in the 1,100 and 1,800 teu segments with a number of newbuildings due in the next 3 months still uncommitted, while sublet candidates have increased. Zim in particular has been actively reducing its charter commitments, through both sublets and charter terminations. 2 ships have already left in July, with several more to be redelivered in the coming month. Activity in the larger sizes is still limited,

Ships

Samsung H.I. snags largest single containership order worth

Evergreen's order for 16 new methanol powered containerships of 16,000 teu at Samsung H.I. marks the single largest containership order contract ever made. The order was finalised on 14 July 2023 and is worth $3.1 Bn (KRW 3.96 Tn) in total, with each unit priced at $193.9m. The ships are scheduled for delivery in 2026 and 2027. A separate order for 8 similar units has been placed at Nihon Shipyard according to Evergreen's announcement made on 11 July 2023.

Charter

Charters Rates for Smaller Feeders Under Pressure as Demand Wanes and Tonnage Builds Up in Asia

Charters rates for smaller feeders below 3,000 teu continues to be under the most pressure with rates noticeably declining over the last 2 weeks as ready tonnage continues to build up in Asia. There has been several reports of deals failing on subjects across all sizes, with demand waning as freight markets continued to weaken. MSC has taken over its 349th resale unit since 2020 with the 1,740 teu X-PRESS COTOPAXI (renamed MSC PAXI II) joining the fleet. Chinese and Russian buyers remain activ

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