New data from Alphaliner reveals that the inactive container ship fleet has surpassed the 1 million TEU mark once again. The survey shows that as of October 9, there are 315 inactive ships, totaling 1.18 million TEUs. This is the first time since May that the inactive fleet has exceeded 1 million TEUs. Out of the inactive fleet, about 60% are in repair yards, while the remaining are decommissioned.
Compared to the previous survey on September 25, there has been a net increase of 44 vessels with 233,504 TEUs, indicating the decommissioning of several large ships. As a result, the idle capacity now accounts for 4.3% of the total container ship fleet, up from 3.4% two weeks earlier.
The rise in the inactive container fleet aligns with the period of low freight demand in the first quarter. In February, the inactive fleet reached its peak at 1.68 million TEUs, representing 6.4% of the mobile container fleet at that time.
The increase in the inactive container fleet is a reflection of the challenging market conditions and decreased demand for shipping due to the ongoing COVID-19 pandemic. These idle vessels indicate a loss of revenue for shipping companies but also provide an opportunity for maintenance and repair work on the ships.
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