The number of containerships sold for recycling in 2024 dropped to 56 units, totaling 80,950 TEUs. In terms of capacity, this is half of the 162,000 TEUs disposed of in 2023.
According to Alphaliner’s latest report, the main reason for this downturn is the optimism that has dominated the freight and charter market to date.
The trend in the shipbreaking market in 2024 has defied initial expectations, which bet on a massive surge in recycling sales due to an ageing global fleet, increasingly stringent environmental regulations and the huge capacity, totaling 3 million TEUs, expected to come onto the market.
Longer sailing times due to ships being diverted to the Cape of Good Hope have so far absorbed the excess capacity, increasing the demand for TEUs in relation to the miles covered. According to Alphaliner, this has contributed to triggering a strong demand for tonnage.
According to the consultancy firm the fact that charter rates had almost doubled since 2023 and reached one of the best levels ever in 2024 meant that “ship owners have had the best reasons to hold on to their older ships and stay clear of the demolition scene.”
Translation by Giles Foster