Container Shipping Fleet Expansion Hits New Record

1203

  • 2024 has marked an all-time high in containership deliveries, with fleet capacity reaching record levels, per BIMCO.
  • A surge in new vessel orders has pushed the order book to 7.6 million TEU, while larger ships dominate growth trends.
  • Sustainability efforts, including scrubber installations and alternative fuel technologies, continue alongside expansion.
  • Fleet recycling is expected to offset future growth as older vessels reach the end of operational life.

According to Offshore Energy, shipyards have reached an unprecedented milestone in containership deliveries in 2024, with 410 new vessels adding a record-breaking 2.5 million TEU capacity to the global fleet. This expansion surpasses the previous annual record of 2.3 million TEU, pushing total fleet capacity to 30.4 million TEU, an 8.7% increase since January. Niels Rasmussen, Chief Shipping Analyst at BIMCO, explains that despite this sharp growth, shipowners remain eager to add to their fleets, suggesting sustained confidence in global trade demand.

Growing Order Book Signals Market Optimism

Shipowners have placed orders for an additional 286 ships this year, totaling 3.3 million TEU in capacity—more than double the previous year’s orders. As a result, the order book now stands at 7.6 million TEU, about 25% of the total fleet capacity, reflecting strong market optimism. Notably, operating owners dominate the order book with a 78% share, positioning them for faster fleet expansion compared to non-operating owners.

Large Vessels Lead Fleet Growth

Fleet expansion in recent years has been driven largely by vessels with capacities between 12,000 and 17,000 TEU, accounting for 42% of growth since early 2020. These ships also constitute almost half of the current order book, indicating a trend toward high-capacity vessels. Meanwhile, ultra-large ships with capacities above 17,000 TEU have contributed 25% of recent growth and represent 27% of orders, further enhancing fleet capabilities.

Sustainability and Scrubber Technology Amid Growth

Despite aggressive fleet expansion, the industry remains focused on sustainability. Scrubber technology is seeing increased uptake, with 40% of the container fleet now equipped to reduce sulfur emissions. As companies shift toward greener technologies, a new wave of vessels designed for alternative fuels is emerging. Hapag-Lloyd, for example, recently launched its Hamburg Express Class vessels, which are fitted with high-pressure dual-fuel engines capable of operating on LNG or conventional fuels.

Decarbonization Efforts with Dual-Fuel Vessels

Hapag-Lloyd’s Hamburg Express Class ships, the largest containerships to fly the German flag, represent a step toward reduced emissions. These dual-fuel vessels are engineered for bio-methane and e-methane compatibility, offering flexibility for low-carbon operations. By preparing for green fuels, these ships align with the broader industry goal of achieving near-zero emissions in the future.

Fleet Recycling to Balance Capacity

While fleet growth is robust, BIMCO anticipates increased vessel recycling in coming years as older ships reach the end of their operational life. Approximately 3.4 million TEU of the fleet will be over 20 years old next year, creating an opportunity to limit growth by scrapping these aging vessels. BIMCO notes that recycling older ships could reduce overall fleet growth from the current order book by 14% over the next five years, supporting sustainability while managing capacity.

 

Did you subscribe to our daily Newsletter?

It’s Free Click here to Subscribe!

Source: Offshore Energy