Idle boxship fleet rises to 10.7% of the existing fleet
The fleet of idle containerships have risen within the last fortnight to reach 1.393 Mteu, or 10.7% of the existing fleet according to the latest Alphaliner newsletter. The rise is led by the operators, which added over 32,000 teu into the idle pool, to reach 707,000 teu. Meanwhile the non-operating owner idle fleet stood at 686,000 teu.
The CKYH carriers led the rise in idle tonnage, as the impact of the group’s service rationalisations on the Asia-Europe route takes effect. Over the course of October, the CKYH carriers are trimming their European offerings by 20% as their portfolio of eight Far East to North Europe and Mediterranean services is being cut to six strings.
Within the grouping, K Line currently has the highest level of idle tonnage with 10 ships of 5,600 teu currently idled. More CKYH vessels are expected to join the idle pool over the next few weeks as a result of the rationalisation.
COSCO’s idle fleet was however reduced as the line has sublet four 4,500 teu units to MISC for deployment on the latter’s newly-launched Halal Express 2 service from the Far East to the Middle East.
Further service rationalisations between now until the end of the year are expected to swell the idle fleet ranks. The main mitigating factor is the rise of some intra-regional trade volumes, particularly in Asia which has seen some new services introduced in recent weeks. Apart from these, the other key factor that could help to absorb the excess fleet is the rise in bunker prices that has prompted a number of carriers to start to revert to slow steaming.
The CKYH carriers led the rise in idle tonnage, as the impact of the group’s service rationalisations on the Asia-Europe route takes effect. Over the course of October, the CKYH carriers are trimming their European offerings by 20% as their portfolio of eight Far East to North Europe and Mediterranean services is being cut to six strings.
Within the grouping, K Line currently has the highest level of idle tonnage with 10 ships of 5,600 teu currently idled. More CKYH vessels are expected to join the idle pool over the next few weeks as a result of the rationalisation.
COSCO’s idle fleet was however reduced as the line has sublet four 4,500 teu units to MISC for deployment on the latter’s newly-launched Halal Express 2 service from the Far East to the Middle East.
Further service rationalisations between now until the end of the year are expected to swell the idle fleet ranks. The main mitigating factor is the rise of some intra-regional trade volumes, particularly in Asia which has seen some new services introduced in recent weeks. Apart from these, the other key factor that could help to absorb the excess fleet is the rise in bunker prices that has prompted a number of carriers to start to revert to slow steaming.