News Content
Boxship demolition totals 11pc of tonnage scrapped, up from 7pc last year
CONTAINERSHIP demolition has picked up this year, with 70 boxships totalling 217,000 TEU and three million deadweight tons scrapped, reports Clarksons shipbrokers.
Containerships account for 11 per cent of total tonnage scrapped in 2016, up from seven per cent in 2015, an increase driven by reduced earnings because of overcapacity and weak rates.
Another influence on increased scrapping was the upcoming opening of the expanded Panama Canal with containerships of 13,000 TEU soon able to transit with old panamaxes suffering reduced employment.
But ironically, it was the postpanamaxes of 3,000-7,999 TEU range that have been scrapped the most year to date, with 12 ships scrapped, up from just two in 2015.
In bulkers, the brisk scrapping of 2015 continued this year, and 262 ships of a combined 20.2 million deadweight tons were been demolished in 2016 - accounting for 79 per cent of tonnage scrapped year to date.
In that time, 62 capesizes have been demolished, following firm scrapping of 93 vessels in 2015. Seventy-two panamaxes have also been reported sold for demolition, with older designs in the 70,000-75,000 dwt making up the majority.
"Outside of these two sectors, demolition activity has been relatively subdued in the year so far. Just 23 tankers of 1.1 million have been reported sold for scrap, following very limited recycling of 2.4 million deadweight tons last year," said Clarksons.
"Elsewhere, offshore vessel demolition has been steady, but lower than some might have expected given the struggling market, perhaps reflecting the low cost of layup in many segments," said the report.
Containerships account for 11 per cent of total tonnage scrapped in 2016, up from seven per cent in 2015, an increase driven by reduced earnings because of overcapacity and weak rates.
Another influence on increased scrapping was the upcoming opening of the expanded Panama Canal with containerships of 13,000 TEU soon able to transit with old panamaxes suffering reduced employment.
But ironically, it was the postpanamaxes of 3,000-7,999 TEU range that have been scrapped the most year to date, with 12 ships scrapped, up from just two in 2015.
In bulkers, the brisk scrapping of 2015 continued this year, and 262 ships of a combined 20.2 million deadweight tons were been demolished in 2016 - accounting for 79 per cent of tonnage scrapped year to date.
In that time, 62 capesizes have been demolished, following firm scrapping of 93 vessels in 2015. Seventy-two panamaxes have also been reported sold for demolition, with older designs in the 70,000-75,000 dwt making up the majority.
"Outside of these two sectors, demolition activity has been relatively subdued in the year so far. Just 23 tankers of 1.1 million have been reported sold for scrap, following very limited recycling of 2.4 million deadweight tons last year," said Clarksons.
"Elsewhere, offshore vessel demolition has been steady, but lower than some might have expected given the struggling market, perhaps reflecting the low cost of layup in many segments," said the report.
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