Shippers Are Now Slashing Capacity Because They're Terrified Of An Ugly Christmas Season

Ghost Fleet Singapore

The unemployment rate is set to soar — for container ships — according to the Paris-based firm Alphaliners via Journal of Commerce.

While there are currently about 225,000 TEU’s-worth (20-foot-containers) of container ships sitting idle, this figure could hit 600,000 – 1,000,000 TEUs by the end of the year. This means that the idle fleet could more than quadruple.

“However, the decline of the containership fleet looks certain to be reversed in the next few weeks as seasonal volume reductions are due, especially on the Asia-Europe trade where some 10 per cent of the ships currently deployed could be removed,” warns Alphaliners.

The CEO of Maersk Line, the largest Asia-Europe player, even corroborated this view. Maersk is planning to slash active capacity in Q4, because as its CEO says, “There will be simply too much capacity in the market, so our response will be to take out some capacity from the start of October.”

Prepare for more pics of idle ships surrounding hubs like Singapore, similar to what we saw in the aftermath of the recent crisis. Christmas won’t be so merry for those out at sea.

See exclusive pictures of the idle fleet which engulfed Singapore last time >

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