The global containership orderbook is swelling, despite weakening trade signs amid the dual headwinds of adverse geopolitical factors and rising inflationary pressures battling the larger economies.
Some 1,000 vessels are already on order at various yards, while a few top carriers are close to signing fresh newbuilding contracts, according to market analyst Alphaliner.
Alphaliner, in a new weekly report, noted that Evergreen Marine is looking to acquire new container vessels with capacities ranging between 15,000 and 17,000 TEUs.
Yang Ming Marine, another Taiwanese carrier, is also negotiating for 15,000 TEU ships, a programme that could see up to 10 newbuild orders.
French liner giant CMA CGM is also considering doubling its six-vessel order it inked with Dalian Shipbuilding Industry Co. earlier this year for 15,000 TEU methanol-powered ships.
“Should all the reported orders go through in the coming weeks, they will push the global vessel orderbook to around 8 million TEUs, around 34% of today’s cellular fleet capacity,” said Alphaliner.
Available data suggests niche container and LNG trade operators have led newbuild ordering over the past few years, outpacing large tanker owners.
At the same time, after riding a windfall of profits over the past few quarters, container carriers are heading towards a steep fall in earnings in the fourth quarter with freight rates already down to near pre-pandemic levels.
“For many years, containerised trade has been the fastest-growing maritime trade segment, but in 2022 is projected to expand at a tepid 1.2%, and even this may be optimistic,” the United Nations (UN) said in a recent report.
The UN added, “Maritime trade is expected to be slowed by macroeconomic headwinds, and inflationary pressures that constrain consumer spending, and by pandemic-induced lockdowns and developments in China’s economy.”
It went on to explain, “There could also be some normalising of demand as consumer spending switches back more to services.”
The Container Shipping Lines’ Association (CSLA), representing foreign liners in India, also noted the challenges ahead for box operators. “While the carriers have placed orders for newbuilds, let’s not forget that there is a significant amount of old tonnage too in the fleet that needs to be off-hired/scrapped,” pointed out the association.
“Besides, reorganisation of services/redeployment of tonnage is a continuous process, which happens all the time,” noted CSLA.
Jenny Daniel
Global Correspondent
Contact email: j.daniel@container-news.com
