The containership industry is facing a significant challenge as the average age of its fleet reaches a record high, prompting discussions about the need for scrapping older vessels and renewing the sector’s energy efficiency, as reported by Spglobal.
- Containership fleet sets a record high average age at 14.2 years, with over 20% aged 20 years or more, necessitating scrapping.
- Anticipated increase in scrapping in 2024 and newbuild deliveries may reduce the fleet’s average age and enhance energy efficiency.
- Majority of scrapped vessels are smaller Feeder and sub-Panamax types, while the orderbook favors larger, more efficient containerships.
Aging Containership Fleet
The containership fleet sets a new record with an average age of 14.2 years, reflecting the highest average age among primary shipping sectors, as over 20% of the fleet surpasses 20 years in age, highlighting the need for retirement and scrapping.
Prospects for Scrapping and Renewal
With increased scrapping expected in 2024 and a wave of newbuild containerships on the horizon, the fleet’s average age is anticipated to decrease. This shift presents an opportunity to enhance energy efficiency across vessel size segments.
Demolition Outlook
Most ships destined for scrapping are smaller Feeder and sub-Panamax vessels, particularly those with TEU capacity below 3,000 TEU. While carriers have been slow to retire tonnage, projections indicate a gradual increase in demolitions in the coming years.
Orderbook and Sustainability
The containership orderbook leans toward larger vessels with a capacity of 15,000 TEU and above, emphasizing scale and efficiency. Newer vessels are expected to boost fleet-wide energy efficiency, with a notable rise in dual-fuel engines capable of using alternative fuels. Methanol-capable boxships gain prominence in 2023 orders.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source:Spglobal
