Demolishing demons – but not where it matters most

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Analysis by Drewry shows that although vessel scrapping has increased significantly this year, it won’t make a whole heap of difference. Why? Because most of the ships being scrapped are below 4,999 teu – whereas the overcapacity problem is in the 10,000teu-plus sector. And the scrapping is happening to vessels formerly on north-south and intra-regional lanes.  Which all goes to show that freight rates will be broadly unaffected by the fact that 73 ships were demolished in the first quarter of this year.