Linerlytica’s report suggests delayed boxship demolitions until 2026-2027. Older vessels in service push the average scrapping age higher. The containership fleet averages 13.8 years, lowering to 11.1 on a teu/weighted basis. MSC and Maersk lead among carriers in fleet age.
Scrap Dynamics
Carriers slow in scrapping aging tonnage; 163,000 teu demolished. New deliveries at 2,088,200 teu surpassing scrapping rates.
Projection: scrap age may drop to 24 years in 2024. Up to a million teu could be removed if achieved. Liner operators upgrading ships; Maersk, Evergreen, Hapag-Lloyd, and MSC active.
Demolition Discrepancy
Drewry’s 2022 forecast of 600,000 teu of demolitions this year has not materialized, for several reasons, despite the weak freight market and attractive scrap prices offered by recyclers in the Indian sub-continent and Turkey.
One reason is that mainline operators are still competing for market share and have not been withdrawing substantial capacity.
Mr. Tan told The Loadstar: “There will be demand for older ships as long as charter rates and freight rates generate positive cashflow for owners. Since most of these ships had received renewal surveys over the past three years due to the buoyant market, they can continue to trade until their next surveys are due.”
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Source: The Load Star
