Some 500,000 TEUs (20-foot-equivalent units) in vessel scrappings and 200,000 TEUs in delivery deferrals will counter 1.65 million TEUs of new box vessel capacity, amounting to 9.6 percent of the total global fleet as of January, that are set for delivery this year.
The intensified scrappings and delivery postponements will prune the forecast 4.1 percent capacity growth rate in 2014 to 5.5 percent, the lowest yearly increase since 1999.
Reports said that most of the box ships to be abolished will involve Panamax vessels, and that a significant number of ships have already been disposed of in the last two months.
Junking of the excess ships, with some only 17 years old, will help decrease the idle container ship fleet, currently representing 4.5 percent of the total fleet.
But overcapacity is expected to continue, as the supply-demand growth imbalance is seen to persist. Forecasts put growth in demand in 2014 at 4.4 percent against a supply expansion rate of 5.5 percent.
Photo: Patrick Feller