| | | | | Simon’s article, however, not only presents the |
| The story by Simon Parry of the UK’s Daily Mail | | | | numbers, but has also covered personal viewpoints |
| is an excellent overview of the true current crisis in | | | | and details that are typically missing from mainstream |
| the ocean freight sector. This is a “must | | | | industry-related publications. It is really quite |
| read” article if you want to know what is really | | | | good. Here is the link to Simon's story - Revealed |
| happening in ocean freight and how it will continue to | | | | - The Ghost Fleet Recession |
| impact all of us over the next few years. | | | | You may want to check with him or others, for |
| | | | | example the Journal of Commerce, occasionally to |
| Like many supply chain professionals I like and read a | | | | get updates. Here are links to a few of their recent |
| number of industry publications daily, and am | | | | articles (FYI - Box ship = container ship. TEU = 20 |
| up-to-date on the changing numbers side of this | | | | foot container. Divide by 2 to get 40 foot container |
| issue. In short, the current (depending on your | | | | equivalent). |
| sources) idle ship statistics are approximately: | | | | This year container lines are set to scrap ten times |
| Container traffic = 12-15% | | | | more ships than average and the most ever |
| Roll On – Roll Off traffic = 20% | | | | recorded in one year |
| Tanker traffic = 2-15% | | | | – Owners Scrap 94 Ships in First Half - |
| | | | | Close to 15% of container ships may stand idle by |
| Interestingly, while oil production has dropped about | | | | end of 2009 |
| 13%, only about 2% of tankers are listed as idle. | | | | – Idle Box Fleet Heading for 2 Million TEUs - |
| This is partly due to incomplete reporting, but more | | | | |
| likely due to oil producers leasing the idle ships to | | | | Scrapping or idling ships in this manner serve to drive |
| store crude and keep “market” supplies | | | | capacity down and provide the basis for higher |
| lower. | | | | rates. We have spoken to these rising ocean |
| | | | | freight rates in a recent post. |