The global container shipping market continues to exhibit strong demand for new vessels, according to a recent report by BIMCO. Despite a brief slowdown in late 2023, orders have surged to their third-highest level since 2008.
Niels Rasmussen, Chief Shipping Analyst at BIMCO, highlighted that year-to-date contracting has already surpassed the total for 2023. Since the beginning of 2021, the industry has contracted for 10.47 million TEU of new capacity, representing a 44% increase compared to the fleet size at the start of that period.
The recent delivery of ultra-large vessels, such as the OOCL Portugal and Alette Maersk, has further fueled the market’s growth. These vessels, with capacities exceeding 20,000 TEU, are setting new standards for efficiency and sustainability.
BIMCO noted that the 1.59 million TEU capacity contracted in 2024 is the third highest since 2008, surpassing the previous four-year contracting record of 8.31 million TEU ordered between 2004 and 2007. The pace of new orders is expected to continue, with major carriers like Maersk and MSC announcing plans for significant fleet expansions.
While the fleet is projected to grow by at least 12% before the end of the decade, Rasmussen warned of potential oversupply if cargo volume growth does not keep pace. The ongoing Red Sea crisis has also contributed to increased demand for shipping capacity.
However, the low rate of ship recycling has been a factor in maintaining a healthy market. Carriers have been reluctant to scrap vessels due to the strong demand and disruptions caused by the Red Sea crisis. BIMCO reported that only 150 ships with a combined capacity of 240,000 TEU have been recycled since 2021.
As a result of the limited recycling activity, the average age of containerships has increased from 13 years to 13.9 years. This, combined with the ongoing newbuilding program, has led to a significant increase in fleet capacity.
