PRESS ROOM

The news from the Baltic and International Maritime Council (BIMCO) that the capacity of the container ship fleet has increased by 1.6 million teu since the start of 2024 makes interesting reading for the U-Freight Group with our strong presence in the international container shipping market, including LCL and FCL import and export operations around the world.

BIMCO, one of the largest of the international shipping associations representing shipowners, says that compared to one year ago, the capacity has risen 11% to 29.5 million teu, the fastest fleet growth in 15 years.

During the first half of 2024, the delivery of new ships reached a new high. A total of 264 ships with a combined capacity of 1.6 million teu have been delivered from shipyards, two thirds more than during the first half of last year when the previous record was set.

Though a new benchmark has not been set, high demand for ships has contributed to keeping recycling of ships at a low level. Strong cargo volume growth and the rerouting of ships via the Cape of Good Hope have contributed to the recycling of only 36 ships with a combined capacity of 51,000 teu.

Despite the record, shipowners have continued to place orders for new ships. Year-to-date, a total of 63 ships with a combined 400,000 teu capacity have been ordered and the order book-to-fleet ratio remains high at 19%.

Already now, the order book contains orders for delivery in 2028 and an average of 1.5 million teu are scheduled for delivery each year between 2025 and 2027.

The combined capacity of 12,000 to 17,000 teu ships has grown the fastest. This segment is now the largest within the container fleet, making up 22%. The segment’s capacity grew 25% year-on-year and the growth made up nearly 50% of the overall fleet’s growth.

In fact, the 12,000 to 17,000 teu segment of ships was also the main driver of growth during 2022 and 2023. In addition, the segment will also dominate growth in the coming years as it makes up more than 50% of the capacity on order.

Ships larger than 17,000 teu dominated growth during 2015-2021 but only make up 17% of the capacity in the order book. Shipowners’ focus has shifted from the larger ships as they are operationally limited to ports in Asia and Europe and the 212 ships already in service cover most of these trade lanes.

The container fleet’s capacity is expected to exceed 30 million teu for the first time at the end of the 3rd quarter and hit 30.5 million teu by the end of 2024. By the end of 2027, the current order book will add another 4.3 million teu. As cargo volume growth is unlikely to match this expansion, we expect ship recycling to increase and temper overall fleet growth. In addition, if ships can eventually return to the Red Sea and the Suez Canal, demand for ships will fall.

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