( BIMCO)– Containership demolition get to perpetuity high and also supplies a favorable shock for the having a hard time container delivery sector.

BIMCO have throughout 2016 concentrated on the degree of demolition in the container delivery sector and also the high degree of demolition task has actually proceeded its speed and also surpassed our assumptions.

BIMCO’s Chief delivery expert Peter Sand remarks: “The demolition activity in the last three months’ surprised BIMCO positively and it exceeded our initial expectation based on the appalling 2015 demolition activity. The advance is a push in the right direction, as demolition activity is one of the essential measures needed to be taken to rebalance the container shipping industry”.

Peter Sand includes: “It is important that the demolition of excess capacity comes sooner rather than later, as there is still a huge delivery schedule hanging over the container shipping industry for the rest of this year and well into 2017-2018. However, the high demolition activity is currently softening the net supply growth rate of the container shipping capacity and will prevent a darker outlook for the years to come, if maintained”.

So much 500,000 TEU have actually been junked, this is 4.2 times even more TEU than the junking task for the exact same months in 2015.

With the last 3 months making up greater than 41 % of the complete demolition in 2016, the task is getting and also is mainly produced by the Panamax container ships. The demolition of Panamax containerships in TEU represent 47 % of the complete demolition in 2016, while TEU junked from Intermediate and also feeder containerships represent 30% and also 23% specifically. The demolition of Intermediate container ships has actually had a fantastic return from just being junked one month in 2015.

The demolition of Intermediate containership is a solid signal, for the steps absorbed the container delivery sector, as they usually are larger and also more youthful than the Panamax and also Feeder containerships.

The high degree of junking is available in the after-effects of BIMCO reporting the most affordable degree of newbuilding agreements in two decades. Container agreements, based upon CGT, were down 84% for the very first 8 months of 2016 contrasted to the exact same duration in 2015.

Chief delivery expert Peter Sand remarks: “The events in 2016 have shown, that the tools to turn the container shipping industry around are being used and are working. The recommendations to consolidate fleets and demolish ships are being taken serious within the industry”.

This post is republished politenessBIMCO.org