CarriersContainersContainer transport
Record: 2.3 million TEU of container ships ordered in Q3
170 new ships
Container shipping companies set a major record in the third quarter of this year, ordering 170 new container ships worldwide, totaling nearly 2.3 million TEU in capacity, according to the French shipping data bureau Alphaliner. This significantly surpasses the previous record of 1.77 million TEU set in the first quarter of 2021, when the global shipping boom spurred by the COVID-19 pandemic led to a surge in container ship orders. These orders reflect a strong commitment to expanding fleet capacity to meet growing demand, despite recent challenges in the global supply chain.
Compared to the previous record, the container shipping industry has increased orders by a significant 28.7%, according to Alphaliner’s calculations. Two standout months dominated the statistics, as during the intervening period, buying interest had cooled considerably. Compared to the second quarter of this year, when shipping companies made far fewer purchases, new container ship orders in the third quarter rose by an impressive 364.3%.
In the first quarter of this year, container shipping companies were still cautious, and in the final quarter of 2023, they nearly froze their spending altogether. Shipping companies were anticipating a significant overcapacity, as many container ships ordered during the pandemic boom had yet to be delivered and put into service.
2024 turned out completely different than expected. Due to the violence from Houthi rebels against cargo shipping in the Red Sea, container shipping companies opted to reroute via the Cape of Good Hope for safety reasons. This increased the sailing distance, causing concerns about overcapacity to vanish like snow in the sun.
Christmas
When shippers began importing their Christmas inventories as early as spring, it triggered an unusually early peak season, which in turn increased the demand for additional container capacity. However, the ships ordered in the third quarter cannot help meet this immediate need: their delivery is scheduled for the years 2026 through 2029.
In addition to current market and political developments, the appetite for new container ships is also driven by the need to modernize and decarbonize container fleets. Many of the ships ordered are “dual fuel,” designed to operate on fuels considered more climate-friendly than traditional heavy fuel oil. Earlier this month, Alphaliner calculated that 44% of the total order book is intended for the replacement of older vessels, specifically those over twenty years old. In practice, however, few older ships are being scrapped at the moment, as shipping companies still find all available vessels useful.
With the entry of new container ships into service and the continued operation of older vessels, the total global container capacity at sea broke through the 30 million TEU barrier for the first time just a few weeks ago.
Source: NT
