The number of decommissioned container ships is increasing
14.12.2022 - 15:10
A significant number of aging vessels are likely to be scrapped in the near future due to the slowdown in the market.
As of December 12, Braemar brokers counted 14 container ships that are being scrapped. Only from the Taiwanese company Wan Hai Lines, 10 small vessels were scrapped at once, Splash reports.
A sharp drop in revenue combined with high charter costs has resulted in a number of small liner operators simply going out of business.
The Shanghai Containerized Freight Index (SCFI) is at its lowest point since August 2020. At the same time, current spot rates on the main Asia-US and Asia-Europe routes may drop even lower, Jefferies analysts report.
At the same time, a 10% expansion of the global fleet is forecast for 2023 — 2.4 million TEU. Against the backdrop of reduced demand for container transportation, companies have to prematurely write off relatively new vessels.
