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Boxship capacity to be cut by record 450,000 TEU affecting 197 ships

THE global containership fleet's capacity is expected to be depleted by a record 450,000 TEU in 2013, breaking the previous record of 377,000 TEU deleted in 2009.

Based on the latest reported scrapping sales, of the 197 ships to be deleted this year, 184 units (435,200 TEU) were scrapped, nine units (8,300 TEU) were converted to non-container use and four units (11,400 TEU) have either sunk or were damaged beyond repair, Alphaliner reports.

The average age of scrapped units reached an all-time low of 22 years, compared to the historical average of 28 years. The younger age at which ships are scrapped reflects the weak trading conditions and excess supply of vessels, especially in the 3,000-5,000 TEU range that have kept charter rates below breakeven levels in this segment, said the Paris-based consultancy.

The average size of scrapped ships also hit an all-time high, reaching 2,365 TEU as a record number of 3,000-5,000 TEU ships were sent for demolition. Seventy ships have been sold for scrap in this size range, including eight overpanamax units, while 58 newbuildings of this size joined the fleet in the same time, of which 39 are overpanamax.

The largest containership scrapped was the 4,953 TEU MSC Catania (built 1994), although the largest unit deleted in the year was the 8,110 TEU MOL Comfort (built 2008) which sank after breaking into two parts in June. The MOL Comfort is the largest containership casualty ever recorded.

Total new containership deliveries continue to grow at a rapid pace. Full year 2013 deliveries are expected to reach 1.39 million TEU, the second highest annual capacity delivery figure after the 1.58 million TEU recorded in 2008.

Deliveries continue to outpace deletions by a ratio of 3:1, with the total fleet capacity growth expected to be just shy of six per cent in 2013. The pace of supply growth is expected to rise in 2014 with a record of 1.6 million TEU to enter the market.