The high charter rates the market is experiencing are likely to halt container ship demolitions until time charter rates being reduced, according to Jonathan Roach, a container market analyst at UK-based shipbroker Braemar.
“Some vessels which were potential demolition candidates have been fixed or extended well into 2021 and will likely be reconsidered for demolition after redelivery from their current charter,” Roach told Container News.
Braemar’s BOXI containership index hit 100 points this week, which is the highest score since the global financial crisis in 2008.
Roach added, “The buoyant container charter market has extended the average time period of time charters. Many fixtures over the past month have pushed redelivery dates well into mid-2021, which could potentially slow the rate of demolition sales in the first half of 2021.”
Considering the market conditions, Braemar is not expecting many more container ship demolition sales in 2020.
Antonis Karamalegkos
Editor
