A containership just seven-years old has been sold for scrap by Rickers Marine Trust, the youngest ever boxship sent for breaking.
The vessel, a seven-year old 4,250 TEU Panamax containership built in China in 2009, has been valued at US$5.87 million, just above scrap value, after 2016 saw its value fall by a massive 62%.
The oversupply in the industry has seen vessel values drop significantly, along with freight rates, meaning younger and younger vessels are being considered for demolition as a means of rebalancing supply and demand in the shipping industry.
However, most larger boxships have not seen the precipitous fall in value of this particular Rickmers vessel, which has been impacted because of the widening of the Panama Canal, making it no longer as economical to use.
The average drop in value across the industry has been 26%, which has still caused an increase in demolition activity so far in 2016.
In 2009, the youngest ship sent for scrap was 24 years old. This figure has gradually dropped until it reached 13 years old in 2015 and now just seven in 2016. Will even younger ships yet be sent to the scrapyard as the industry fights for survival?