According to Alphaliner, container ship demolition sales have increased at a slower rate than anticipated in the first months of 2023, with only 28 container ships of 500 teu and above for a total of 48,555 teu sold for recycling since 1 January. January. However, this is much higher than last year at the same time, when zero vessels were sold to breakers.
The average age of the sold vessels was at the high level of 28 years with most of the sales concentrated in the range of 1,000-2,000 teu in more than 80% of the transactions by number (23 units). The smallest ship sold for recycling was the LEVANT HORIZON of 591 teu and the largest was the FLORA of 6,572 teu. Eighteen of the demolition sales concerned three aircraft carriers: Wan Hai divested ten of its 1,088-1,368 teu ‘160’ and ‘200’ series ships built in the 1990s and Singapore’s Transworld Group sold four 1,600-1,700 units built in the 1990s.
Meanwhile, MSC returned to the scrapping scene after a long absence, selling three ships built in the 1980s, the 1,911 teu MSC FLORIANA and the 2,098 teu MSC GIO-VANNA, as well as the 4,809 teu MSC VERONIQUE. , a former Maersk ship (see page 2). . A fourth vessel, the 1,837 teu MSC NORA II, built in 1999, has also been sold in recent days and more sales could follow in the coming months.
While wrecking sales to date have now surpassed the previous two years’ total, the pace remains well below even modest years like 2019 and 2020. This is primarily the result of an unexpectedly strong charter market, with some owners willing to extend the commercial life of ships that would otherwise have been burned down. However, Alphaliner believes that scrapping will continue to gain momentum in the coming months, especially as the massive influx of newbuild tonnage will put increasing pressure on tonnage supply, while the CII remains unfavorable for older and lesser units. efficient.