Global newbuilding activity falls to four-year low as caution shapes market sentiment

According to Greece-based Allied Shipbroking, shipowners placed orders for 439 vessels worldwide in the first four months of the year – a sharp drop from 980 vessels during the same period in 2024 and 809 in 2023.

Analysts note current contracting levels are comparable to those last seen in 2020, reflecting a widespread sense of caution. This hesitancy is largely driven by macroeconomic pressures, increasingly complex regulatory frameworks, and mounting geopolitical uncertainty.

Tankers and container vessels have led newbuilding activity so far this year. Tankers account for 24% of the global tonnage currently under construction, with an orderbook-to-fleet ratio of 13%. In the container vessel segment, orders represent 14% of the total orderbook and correspond to 13% of the existing fleet.

In contrast, the bulk carrier sector remains more conservative in its newbuild commitments. The segment holds a 22% share of the total global orders, with an orderbook-to-fleet ratio of 10%.

Strategic shifts among leading shipowners

Among the world’s top shipping investors, both Greek and Chinese owners have scaled back new orders, while strategically reshaping their portfolios.

Greek shipowners contracted 65 vessels in the first four months of 2025, down from 112 in the same period last year. Nonetheless, Greece’s share of global orders rose from 12% in 2024 to 15% in 2025 by vessel count. Tankers make up 49% of these new orders, followed by container vessels at 43%. There is a marked lack of new ordering activity in the dry bulk and gas carrier markets – historically key areas of investment for Greek owners.

"Greek market players are adopting a highly selective investment strategy, shifting their contracting activity toward technically sound, regulation-aligned shipbuilders," Allied noted. Indeed, the proposed US port fees on Chinese-built tonnage have sparked renewed investment interest in South Korean shipyards, despite their higher costs compared with China – the preferred shipbuilding destination until now.

Chinese owners also reduced their order volume but expanded their market share. In the first four months of 2025, they placed orders for 69 vessels – down from 146 units a year earlier – but accounted for 16% of global contracting volume, up from 15% in 2024.

Tankers remain the top priority for Chinese shipowners, comprising 52% of their orders, followed by container vessels (16%) and bulk carriers (13%).

Japanese shipping companies signed contracts for 23 vessels, representing 5% of global orders. Their focus remains on bulk carriers (39%), with tankers (22%) and gas carriers (18%) following.