News / Surging steel price boosts scrap value of redundant containerships

© Koscusko

A sharp increase in steel prices has prompted a new wave of vessel scrapping, bringing the supply-demand ratio in container shipping further into balance.

According to the latest report from London shipbroker Braemar ACM, containership scrapping this year has already reached 56, amounting to 185,500 teu. This compares with 16 ships (45,000 teu) in the same period of 2016.

Moreover, the delivery of newbuild tonnage has slowed considerably, with only 18 vessels, totalling 91,500 teu, having been delivered so far this year.

Over 2016, there were ...