Maersk Line following the trend of ship demolition

COPENHAGEN : Maersk Line has sold a 1999-built feeder ship for scrap, joining several other liner operators that have begun shedding older tonnage as the freight market corrects to pre-Covid-19 levels.

Brokers said that the 1,092 TEU Maersk Aberdeen was demolished in Alang, India, on 2 February, after being sold to a Malaysian buyer, Accurate International, in January, on an “as is” basis in Jebel Ali, UAE.

Star Asia Shipbroking stated that Maersk Aberdeen’s scrap price was US$2.78 million, below its demolition value of around US$3.3 million at the time. The price difference was attributed to Maersk’s requirement for the ship to be sent for green recycling.

Cash buyers said that healthier steel plate prices and better liquidity make India the main destination for ship recycling, although PaxOcean Engineering, part of Malaysian conglomerate Kuok group, has gotten its shipyard in Batam, Indonesia, eligible for green recycling. Five of the 10 container ships that Wan Hai Lines recently sold for scrap are headed to PaxOcean’s Batam yard for recycling.

Since freight levels began declining amid collapsed cargo demand and subsiding port congestion, Evergreen Marine Corporation, Wan Hai Lines, Regional Container Lines and Shreyas Shipping and Logistics, are among the liner operators that have sold elderly ships for recycling.