The number of inactive container shipping fleet rose to its highest level last month according to industry research firm, Alphaliner.

In its weekly newsletter, Alphaliner said the inactive container shipping fleet has reached  11.6% of the fleet capacity at the end of May.

The number of idle containership fleet was also recorded at 2.72 million TEUs as May 25  — representing 11.6% of capacity driven by low demand and blank sailings due to the coronavirus outbreak and ships being retrofitted for scrubbers.

Alphaliner said around 64 vessels (571,858 TEUs) are currently undergoing scrubber retrofitting.

Two of the world's largest container lines – Maersk and MSC – account for bulk of the idle fleet with a combined total of 845,000 TEU out of service as more than half of the volume is due to vessels undergoing retrofitting for scrubbers.

“There are encouraging signs that carriers have over-estimated the level of demand contraction in May, and capacity shortages on certain routes have already started to push spot freight rates up,” Alphaliner said, noting that some recovery is expected shortly as worldwide lockdowns start to ease and demand slowly recovers.