Alphaliner reports huge container ship orders
In the latest issue of Alphaliner's weekly newsletter, the maritime consultancy reports that in the last two quarters there has been a huge amount of newbuilding orders in the container shipping sector, especially for ultra large vessels.
The orders follow years of restraint, and suggest that the owners and lines have greater confidence in their ability to generate revenue in the capital intensive container shipping sector that has been buoyed by very high freight rates; ongoing demand and strong financial results.
Alphaliner reports that ordering activity had dropped to an absolute low point in 2020, with near zero activity in Q2 and Q3, but low interest rates, and strong competition between shipyards, seem to have convinced owners, lessors, and carriers to cast off the shackles that had prevented them from ordering newbuilds.
In Q4, orders started pouring in, with just under 1.0 million teu of orders for small regional vessels, as well as large ships for the deep-sea trades, whilst Q1 of 2021 has already reached 1.22 million teu, with a week still to go.
Commenting on the fact that most orders are for either regional ships of 1,000 to 4,000 teu, or mainline vessels of 10,000 teu or more, Alphaliner says that the lack of orders for ships in the middle of the market means that, sooner or later, some replenishment of the mid-sized market is needed, as many of that part of the fleet date from the early 2000s and will start to reach retirement age soon.
For further details contact Alphaliner.