The number of container ships being ordered has increased unprecedentedly, with several shipping companies currently having more ships on order than their entire existing fleet. Market analysts view this situation as a sign of a major shift in the maritime transport market.
Sharp Increase in Orders
According to analysts, shipping companies such as Regional Container Lines with 157%, Zhonggu Logistics with 122%, and Kawa Shipping with 130% are among the top 100 companies where the volume of orders exceeds their current fleet. Additionally, Hai An Transport and Tailwind Shipping lead in this area with 368% and 97%, respectively.
Overall, the ratio of ship orders to the current fleet has increased to over 45%, the highest level since 2009. This situation has arisen following the recent order confirmations by Maersk for 26 ships and CMA CGM's plan for 12 ships of the giant 24,000 TEU capacity.
Competition and Upcoming Challenges
Major shipping companies, including Maersk and MSC, have currently ordered about 35% and 39% of their existing fleet, respectively. This fleet increase could significantly impact the competition among these companies and necessitate an increase in market share for each shipping line. This situation may make it more difficult to maintain capacity discipline.
At the same time, various disruptions have also affected capacity. Despite the increase in the number of ships, companies have managed to keep ship utilization at high levels through empty voyages and careful fleet management. However, it seems that a second shock may occur simultaneously with the return of services from Asia to Europe via the Suez Canal, which could shorten voyages and free up ship capacity.
The real test for the container shipping industry will be when this returning capacity coincides with the largest order book in the history of the industry.
