Scrapping of container ships has tripled over the first five months of 2016 compared with the same period in 2015, according to figures released by Bimco.
The trend merely confirms the very weak demand for ocean-going shipping and the commensurate low shipping rates, according to Bimco.
A total of 150,863 teu of Panamax-sized vessels has been scrapped so far in 2016, a figure equaling the number of vessels broken up from June 2014 to December 2015.
Beyond the long-term slowdown in the sector, Bimco analyst Peter Sand also cited the widening of the Panama Canal as one reason for the increased break up of more medium-sized vessels, with bigger ships now in demand.
Bimco estimated that vessels totaling 400K teu will be scrapped in 2016, up from a previous estimate of 250K teu.
