Global container fleet expands by almost 1.44 million TEU in 2017

Global container fleetThe global container fleet will expand by almost 1.44 million TEU in 2017, as the capacity of scheduled deliveries of very large container ships (VLCS) and ultra-large container ships (ULCS) is almost twice bigger that vessels scheduled for decommissioning, shows the report of Alphaliner. According to the estimates the world container capacity will expand by 1.69 million TEU and even with potential failure for 0.25 million TEU, the projected increase will amount to 1.44 million TEU. The report also shows that in 2017 the percentage of decommissioned vessels sent for scrapping, will reach 3.4%.

“The relatively high growth rate of the fleet, compared to the low (1.5%) growth in 2016, when the expansion was 0.93 million TEU, will increase the build-up of excess capacity and further delay in the recovery of container transportation market”, stated Alphaliner, adding that the new vessels only join the ranks of the idle fleet, which currently stands at 1.4 million TEU.

While poor market conditions may lead to postponement of some deliveries of new vessels, it is unlikely to lead to a significant change in current projections. Of the total 1.67 million TEU newbuildings this year, about 78% are vessels with a capacity of more than 10,000 TEU. More than a half of the VLCS or about 0.92 million TEU newbuildings (about 54 vessels) are with a capacity of 14,000-21,000 TEU.