MSC Dominates Containership Fleet Aged 20 Years or Older
Key Highlights :
The global containership fleet is facing serious overcapacity, and according to analyst Alphaliner, 20% of the fleet capacity, or just under 3 million TEU, is now aged 20 years or more. Of this older tonnage, MSC controls close to 25%, with 212 vessels, or 718,000 TEU, that are 20 years or older. This is largely due to MSC's secondhand buying spree from August 2020, which saw the purchase of 330 vessels, 145 of which are aged 20 years or more.
Maersk is the next largest owner of older tonnage, with just 48 vessels, followed by Evergreen with 36 units. Despite the overcapacity, very few of the 20 year or older vessels have been retrofitted for decarbonisation, and less than 100 have been fitted with scrubbers.
So far this year, only 70 older vessels totalling 140,000 TEU in capacity have been sent to the breakers. Alphaliner commented that many vessels remain in sound technical condition or perfectly fit for certain trades, especially in the smaller sizes, and so will likely continue to trade in the coming years, irrespective of the market headwinds or tougher environmental regulations.
MSC's dominance of the older containership fleet is likely to remain, and the company's secondhand buying spree could be the start of a trend. With container shipping facing serious overcapacity, and fewer vessels being recycled, the secondhand market could be the only way to acquire tonnage. This could be beneficial to MSC, as well as other companies who are looking to expand their fleet.
