Global market boosts container ship production
Global container ship production reached a record high at the beginning of 2024. The number of ships increased by 41 units with a total capacity of around 300 thousand TEU. This number includes 8 container ships with more than 15 thousand TEU capacity.
Experts believe that this record will be broken this year. Manufacturers promise to produce about 2.8 million TEU of additional cargo in this period. The total number of container ships planned for production equals the capacity of Cosco. The latter is the world’s fourth largest offshore operator, with an order book of 790,000 TEU. This compares with 1.1 million TEU for CMA CGM and 1.4 million TEU for MSC.
According to Alphaliner, the targets set for the current market are not difficult to achieve. The sector should have been able to utilise this capacity even earlier were it not for some problems. First and foremost is the situation in the Red Sea, where transport has become almost impossible. As a result, maritime logistics are experiencing disruptions that hamper the market’s development.
Challenges for the sector
Alphaliner questions the feasibility of increasing capacity under the current conditions. A dramatic increase would create difficulties once the industry has dealt with the disruptions.
The basis for such concerns is an analysis of past trends:
- before the closure of the Suez Canal, the balance between supply and demand was uneven;
- the balance tilted in favour of the carriers;
- demand growth was relatively weak – about 3-4 percent;
- while supply grew by 10%.
After the closure of the Suez Canal, the demand for container ships increased rapidly. Ships had to switch to a longer route around Africa. To compensate for the longer delivery times, operators added tonnage.
In addition to the new capacity, Maersk received a dual-fuel ship that runs on methanol. It is the first in a series of 12 units to join the logistics giant’s fleet. The container ship has a capacity of 16,600 TEU and is already operating on the Asia-Northern Europe route.
The Alphaliner states that the market for ships with more than 12.5 thousand TEU capacity is not inactive. This indicates good momentum in the industry and high demand. In addition, some vessels have entered the routes from dry dock to meet the growing demand.
Carriers are rescheduling their voyages to reduce the impact of the current problems at sea. This, in turn, leads to an increase in delivery time, which has a negative impact on business processes. This situation has slowed down the S&P sector and the demolition market. Many container ship owners have postponed sales until the situation stabilises.
