Drewry: Containership scrapping will double this year

About 450,000 TEUs of capacity is expected to be scrapped in 2016, which would be double the amount scrapped in 2015, according to the London-based shipping consultant Drewry.    About 450,000 TEUs of capacity is expected to be scrapped in 2016, according to the London-based shipping consultant Drewry.
   “The opening of the new Panama Canal, a widening gap between ocean transport supply and demand and the fear of continuing losses among charter owners are three compelling factors behind the current surge in boxship demolitions,” Drewry noted in its Container Insight Weekly newsletter.
   The amount scrapped would be double the amount scrapped last year and even higher than the 444,000 TEUs scrapped in 2013.
   “Although necessary, ship demolitions will not be enough to bring the container sector back into balance unless owners also refrain from ordering many new vessels,” Drewry said.
   In addition, the opening of the new locks at the Panama Canal has created a surplus of 4,500 TEU-ships and more of those ships are likely to be scrapped and replaced by larger ships, Drewry added.