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First quarter that no box ship orders are placed since 2009, says BIMCO
NO orders were placed for a new containership orders in the first quarter, representing the first time this has happened since the second quarter of 2009, according to the owners group BIMCO.
This was attributed to overcapacity in the container shipping market, given the large number of orders placed for mega ships in recent years.
"The lack of orders reflects the very poor market conditions and the fact that 2015 saw 2.2 million TEU being ordered. This was the second ever largest volume of containership capacity ordered annually - second only to 2007 when 3.25 million TEU was contracted," said BIMCO analyst Peter Sand.
Owners are staying clear from new orders also due to the delivery of new containership capacity, which BIMCO claims has exceeded its expectations with 240,730 TEU delivered into the fleet in Q1.
On the other hand, recycling of superfluous ships was stepped up slightly in 2016, with 105,509 TEU leaving the fleet. As a result, the net growth of the fleet in Q1 was 0.7 per cent. For the full year BIMCO expects 3.4 per cent.
March saw the record broken for the largest containership ever to be demolished. The 15-year-old, 6,479 TEU CSAV Papudo was sold to breakers in India at a strong US$295 per ldt, and became only the second ship with a capacity of more the 6,000 TEU to be demolished.
"However, years of negative fleet growth need to pass for the supply-demand balance to be restored, as BIMCO's forecast of 250,000 TEU to be broken up in 2016 only cuts into the fleet by a fraction representing 1.26 per cent of the current fleet size," said Mr Sand.
This was attributed to overcapacity in the container shipping market, given the large number of orders placed for mega ships in recent years.
"The lack of orders reflects the very poor market conditions and the fact that 2015 saw 2.2 million TEU being ordered. This was the second ever largest volume of containership capacity ordered annually - second only to 2007 when 3.25 million TEU was contracted," said BIMCO analyst Peter Sand.
Owners are staying clear from new orders also due to the delivery of new containership capacity, which BIMCO claims has exceeded its expectations with 240,730 TEU delivered into the fleet in Q1.
On the other hand, recycling of superfluous ships was stepped up slightly in 2016, with 105,509 TEU leaving the fleet. As a result, the net growth of the fleet in Q1 was 0.7 per cent. For the full year BIMCO expects 3.4 per cent.
March saw the record broken for the largest containership ever to be demolished. The 15-year-old, 6,479 TEU CSAV Papudo was sold to breakers in India at a strong US$295 per ldt, and became only the second ship with a capacity of more the 6,000 TEU to be demolished.
"However, years of negative fleet growth need to pass for the supply-demand balance to be restored, as BIMCO's forecast of 250,000 TEU to be broken up in 2016 only cuts into the fleet by a fraction representing 1.26 per cent of the current fleet size," said Mr Sand.
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