- New container vessel orders surged by 52% year-on-year, driven by high charter rates and post-COVID demand.
- A record-breaking year for deliveries is expected with strong growth likely to continue in the coming years.
- Post-Panamax charter rates have doubled, sustaining the demand for new orders and deliveries.
Container vessel orders increased by approximately 52% in 2024, with 254 new contracts placed versus 167 in the same period of 2023, per a report by VesselsValue’s maritime data arm of Veson Nautical. The report attributes this surge to post-COVID demand, reports AJOT.
Significant Surge in New Vessel Deliveries
In addition to the spike in orders, 362 new vessels entered the market in 2024.
A further 169 vessels are expected to join by year-end, making 2024 a record-breaking year for new container vessel deliveries.
Positive Market Outlook for Coming Years
VesselsValue’s Rebecca Galanopoulos predicts that new order trends will continue for several years, spurred by the ongoing post-COVID container demand.
The strong influx of orders signals sustained momentum in the market.
Decline in Vessel Removals
Removals have remained low in 2024, with only 48 vessels sent for demolition, marking a ~45% year-on-year decrease.
The low removal rate suggests that owners are capitalizing on high charter rates.
Doubling of Charter Rates in the Post-Panamax Sector
Post-Panamax charter rates have surged, doubling from last year.
Rates are averaging around $72,000 per day since July 2024, compared to $36,000 per day in the same period of 2023, according to Galanopoulos.
High Charter Rates Driving New Orders and Deliveries
The current “bull market” in charter rates is the main driver behind increased deliveries and new vessel orders, as per VesselsValue’s insights.
High rates encourage both new orders and delayed scrapping to capitalize on robust market conditions.
Sustained Market Strength in Container Shipping
With strong charter rates and minimal vessel removals, 2024’s container shipping market shows exceptional resilience and growth.
The report indicates the sector’s continued strength and sustained profitability.
Expected Long-Term Trends in Container Vessel Demand
Given the current demand surge, the container shipping market is likely to see long-term growth and an extended period of high charter rates, marking a “golden age” in post-COVID container shipping.
Driven by high charter rates and reduced vessel removals, 2024 is set to break records in container vessel deliveries and new orders. Industry experts anticipate this positive trend will continue, bolstering container shipping’s profitability.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: AJOT
