Box ship orders at record-setting pace, up by more than 50% in 2024

Data on the newbuilding spree notes orders of container vessels are up by 52% year-on-year with 254 new contracts placed in 2024, compared with 167 in the corresponding period of 2023.

The report by VesselsValue, the data intelligence arm of maritime data and freight management provider Veson Nautical, reports 2024 has seen 362 new container vessels entering the market.

Container ships accounted for 250 vessels ordered between January-September, with more than 80% of box ship capacity ordered this year being alternative-fuel capable. Chinese yards account for about 90% of orders in TEU terms.

“Thanks to the post-Covid container boom, 2024 looks set to be a record-breaking year in terms of new container vessels entering the market,” VesselsValue senior content analyst Rebecca Galanopoulo said. “The huge rise in new orders this year means this trend looks set to continue for the next few years.”

Around 170 ships are be set to be delivered in the last few months of this year, according to the figures in the report.

Demolition activity has not picked up enough to balance the fleet expansion. Ms Galanopoulos said removals remain low, with just 48 container vessels sent for demolition so far in 2024, a fall of 45% year-on-year.

The research also states the robust market conditions are reflected in charter rates, which have doubled for the post-Panamax sector.

“Charter rates for post-Panamaxes have been hovering around the US$72,000/day mark since July, an increase of 100% from the same time last year, where rates were around US$36,000/day,” Ms Galanopoulos said. “This type of bull market is what is driving the rise in new deliveries and new orders.”

Container Shipping & Port Technology has reported on several major container ship newbuilding deals in 2024, including German giant Hapag-Lloyd’s recent US$4Bn order for a dozen new container ships to be built at two Chinese yards. Yangzijiang Shipbuilding Group will build these 16,800-TEU vessels while another dozen 9,200-TEU vessels have been ordered from New Times Shipbuilding Co to replacer older ships in the Hapag-Lloyd fleet.

Other notable deals include AP Moller Maersk’s order for 10 16,000-TEU Panamaxes at South Korea’s Hanwha Ocean due for delivery in 2027, half a dozen 13,600-TEU Panamax box ships and 10 ultra large container vessels ordered by Seaspan, scheduled to be built at Hudong Zhonghua and delivered between 2027-2029.