Monday, June 23, 2025
Home Industry Opinions Container sector bullish after stellar 2024, but downside risks could prompt 2025...

Container sector bullish after stellar 2024, but downside risks could prompt 2025 slowdown

The time charter (TC) rates for post-panamax container vessels rose by 111% year-on-year (y-o-y) in 2024, hitting US$73,330/day, and has led to a huge uptick in newbuild orders and a slowdown in demolitions, according to Veson Nautical’s 2024 End- Of-Year-Report.

The report states that the bullish market conditions for the container sector are reflected in the TC rates as well as the 76% y-o-y increase in new ship orders which witnessed 321 deals including options, compared to 182 orders in 2023.

Source: VesselsValue, a Veson Nautical solution

“The container market experienced remarkable growth over the past year, driven by increased demand, rising earnings, and a robust asset value resurgence across all sectors,” says Rebecca Galanopoulos, Senior Valuations & Analytics Analyst at Veson Nautical.

“Despite the large volumes of new vessels hitting the water, the situation in the Red Sea lent support to container freight rates by increasing ton-mile demand. The potential de-escalation of hostilities would allow for Suez Canal transits to resume which could have an impact on demand.”

Galanopoulos adds that if supply begins to exceed demand, there is potential to scrap older vessels.

The report also states that the bulging orderbook for new container vessels was driven by Taiwan and Singapore in 2024 with 42 new orders each. Switzerland and China followed with 36 and 34 orders respectively.

Source: VesselsValue, a Veson Nautical solution

The highly attractive terms on price and availability being offered by Chinese shipyards meant that they dominated the market, receiving orders for 259 vessels, equating to a market share of around 81%, South Korean shipbuilders secured 52 deals and Taiwan 12 vessel orders.

The report adds that the bullish conditions witnessed during 2024 also impacted demolition sales with figures dropping by about 34% y-o-y as 51 vessels were sent to the breakers.


This article was written by Rebecca Galanopoulos, Senior Valuations & Analytics Analyst at Veson Nautical.





Latest Posts

We Asked AI: Container Ships in Ancient Worlds

Container Ships in Ancient Worlds Imagine a colossal container ship gliding through the Nile as pyramids rise in the distance, or docking at a bustling...

Scenario planning for Mediterranean ports growth amid ongoing tensions

The sustained growth of Mediterranean port traffic, driven by increased Asia-Europe trade and the Red Sea crisis, presents a dynamic landscape for global shipping. Assuming...

Thessaloniki port Revival: Balkan gateway reawakens

 For decades, Thessaloniki was a port with strategic promise but structural limitations, ideally located at the crossroads of Europe and the Balkans, yet constrained...

Vigor Marine Group’s consolidation signals US push to counter China’s shipbuilding dominance

In a bold move to strengthen America’s maritime capabilities, five leading US ship repair and marine service providers have united under a single banner. This...

AI reshape shipping operations

The integration of artificial intelligence into shipping operations, is poised to transform competition in the maritime industry by enhancing efficiency, safety, and sustainability while...
error: Content is protected !!