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Container ship idle rates at historic low amid Red Sea crisis

Alphaliner has reported a historic low in the idle container fleet for the first ten months of the year, with the Red Sea crisis impacting ship employment more significantly than the COVID-19 pandemic. On average, only 0.7% of the global cellular container fleet was idle from January to October, a decrease from the 0.9% recorded during the same period in 2021 and 2022. The rerouting of the majority of containerships via the Cape of Good Hope, extending voyage times by approximately two weeks, has absorbed capacity despite a surge in new builds from Asian yards.

The shipping industry has faced schedule disruptions and vessel bunching on a scale comparable to the pandemic era, as reported by Sea Intelligence. These challenges have been particularly pronounced on key routes such as Asia-Europe. Furthermore, the United Nations Conference on Trade and Development (UNCTAD) in its Review of Maritime Transport 2024, highlights the profitability maintained by container lines amidst these disruptions, attributed in part to the actions of the Houthis.

Source: Splash247

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