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Significant increase in containership scrapping

32,885 TEU have been sold for demolition in the first two months of 2012. This corresponds to 44 per cent of the entire scrapped container ship capacity in 2011.

Low time-charter rates and overcapacity in the container fleet seem to shine through in the tonnage volume sold for demolition. This can be seen in Clarksons’ “Container Intelligence Monthly” report.

“Scrapping in the container ship market has started the year at a relatively rapid pace”, Clarksons writes.

In February, 10 containerships with a combined volume of 18,695 TEU were sold for demolition while 8 ships at a total of 14,190 TEU were scrapped in January. Thus, the overall tonnage sold for scrapping in the first two months of 2012 almost equals half the total 2011 tonnage scrapped

“Taking into account the currently depressed timecharter market and large number of boxships currently without employment (5.8% of the fleet in terms of capacity), it is expected that the number of monthly demolitions will remain high, at least in the short-term”, Clarksons writes

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