New vessel capacity due for delivery this year, amounting to a record 1.65 million TEU and representing 9.6 per cent of the total global fleet as of January, will be offset by scrapping 500,000 TEU and 200,000 TEU in delivery deferrals, according to Shipping Gazette.
The flood of vessel scrapings and delivery postponements would cut 4.1 per cent off the forecast 2014 capacity growth rate and bring it down to 5.5 per cent, according to Alphaliner, which would be the lowest annual increase since 1999.
Containership scrapping is expected to reach a new annual record spurred by the recent exodus of unwanted panamax ships, which are expected to account for more than half of the capacity to be scrapped this year.
A record number of ships has already been sold for scrap in the last two months, led by Maersk and Hanjin Shipping, who are in the swing of disposing 27 vessels ranging in size from 3,600 to 5,300 TEU.
They join Cosco who has scrapped eight ships of 700-4,200 TEU in the past few weeks alone, with more disposals expected later this year.
The disposal of unwanted ships, some as young as 17 years, will help slim down the idle containership fleet, which currently accounts for 4.5 per cent of the total fleet.
Oversupply is expected to continue in the container shipping market this year, as the projected demand growth of 4.4 per cent will still be insufficient to absorb the revised supply growth of 5.5 per cent.
Demand rose by 3.7 per cent in 2013 based on Alphaliner's estimates of container throughput growth globally, compared to containership capacity supply growth of 5.7 per cent.
Significant idle rates are expected to persist for the majority of the year, especially for vessels below 5,000 TEU.
The weak outlook is forecast to keep charter rates under pressure in 2014, with additional delivery deferrals anticipated as non-vessel operating owners would be keen to hold up deliveries of some ships due this year.
There are 80 ships for 302,000 TEU slated for delivery in 2014 to non-operating owners that are without known charter employment.
The flood of vessel scrapings and delivery postponements would cut 4.1 per cent off the forecast 2014 capacity growth rate and bring it down to 5.5 per cent, according to Alphaliner, which would be the lowest annual increase since 1999.
Containership scrapping is expected to reach a new annual record spurred by the recent exodus of unwanted panamax ships, which are expected to account for more than half of the capacity to be scrapped this year.
A record number of ships has already been sold for scrap in the last two months, led by Maersk and Hanjin Shipping, who are in the swing of disposing 27 vessels ranging in size from 3,600 to 5,300 TEU.
They join Cosco who has scrapped eight ships of 700-4,200 TEU in the past few weeks alone, with more disposals expected later this year.
The disposal of unwanted ships, some as young as 17 years, will help slim down the idle containership fleet, which currently accounts for 4.5 per cent of the total fleet.
Oversupply is expected to continue in the container shipping market this year, as the projected demand growth of 4.4 per cent will still be insufficient to absorb the revised supply growth of 5.5 per cent.
Demand rose by 3.7 per cent in 2013 based on Alphaliner's estimates of container throughput growth globally, compared to containership capacity supply growth of 5.7 per cent.
Significant idle rates are expected to persist for the majority of the year, especially for vessels below 5,000 TEU.
The weak outlook is forecast to keep charter rates under pressure in 2014, with additional delivery deferrals anticipated as non-vessel operating owners would be keen to hold up deliveries of some ships due this year.
There are 80 ships for 302,000 TEU slated for delivery in 2014 to non-operating owners that are without known charter employment.