Boxship deliveries to outpace scrapping by two to one this year: Alphaliner

Boxship deliveries will outpace scrapping by two to one in 2017, analysts Alphaliner warns in its latest weekly report.

Some 78% of the 1.69m teu of new containership capacity scheduled to be added to the fleet is concentrated on ships above 10,000 teu. The overall delivery figure is projected to be twice as
high as Alphaliner’s 0.75m teu containership scrapping forecast for 2017.

“Even accounting for a potential slippage of about 250,000 teu, with some deliveries likely to be deferred by shipowners, the projected capacity additions would still reach 1.44m teu, with net fleet growth after slippage and scrapping forecast to reach 3.4% this year,” Alphaliner reported.

The consultant said that the deliveries would prolong overcapacity and further delay the recovery in the container shipping market. Alphaliner also predicted the amount of idle tonnage would grow this year.

“Forced cascading, triggered by the incessant flow of ULCS newbuildings, will continue to create havoc among smaller ship sizes, hampering any substantial rise in containership charter rates,” Alphaliner added.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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