By the middle of February an estimated 9% of the world’s container fleet – around 400 ships with a carrying capacity of 1.1m teu – was idle, with more being added each day, according to AXS Alphaliner. Shipbroker’s Clarkson believes this number to be on the conservative side.
In some cases charter rates no longer cover vessel financing costs, with rates for an average sized 3,500 teu ship decreasing by up to 44% in a three month period. Although owners have laid up ‘hot’ ships in the anticipation of trade returning but are now adopting full lay up as trading conditions worsen.
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