Orders for new ships this week were concentrated on containerships. Many wonder if this will create an oversupply issue further down the line which will just add to the boom and bust cycle that has happened many times before.
Owners are hoping for an increase in the demand for eco-friendly ships and new sizes for economy of scale but those ships still need to be filled for the owners to make money and that will become more difficult when the rates eventually drop.
The lack of mid-size containerships trading globally is driving up freight rates for ships in this sector, but many of these vessels are quite old. Lack of suitable tonnage and congestion at ports are helping to keep freight rates high, creating a surge in orders for mid-size capacity with dozens of feeders being ordered. Several yards that would normally build much bigger ships are now quoting for feeder vessels, and building slots continue to fill up with some deliveries stretching into 2026!
Because of the increase in shipbuilding demand the price of steel has been pushed up which in turn pushes up the prices of new vessels too. Despite all of this there is little sign of any changes being made anytime soon, and it is great to see that things appear to be well on the road to recovery which is welcome news for the marine industry.
Paul Hopkins, Sales & Marketing Executive