- Despite over two million new container vessels joining the global fleet this year, the pool of open tonnage is at a record low, with only 67 vessels idle, mostly small-sized.
- Peak season pressures, port congestion, and regional disruptions are increasing the demand for available vessels, straining the supply.
- Carriers are chartering additional capacity and placing new orders, but the newbuilds won’t arrive until at least 2027. Despite this, the industry is optimistic about future profits.
Despite the addition of over two million TEU of new container vessels to the global fleet this year, the available pool of open tonnage remains at a record low. This shortage presents challenges for carrier ship managers trying to manage schedule delays and necessary dry-docking through the charter market, reports The Loadstar.
Small Vessels Dominate the Idle Fleet
As of August 12, only 67 vessels, totaling 195,159 TEU, were commercially idle, making up just 0.6% of the world’s 30 million TEU fleet capacity, according to Alphaliner. The idled vessels are primarily small, with 41 of the 67 having capacities of less than 2,000 TEU.
The current strain on supply is exacerbated by several factors: the peak season for liner shipping, intermittent port congestion, and disruptions around Africa. Additionally, industrial actions on the US East Coast, a potential rail strike in Canada, and other regional disruptions could further tighten vessel availability. Alphaliner noted,“The liner shipping peak season, intermittent congestion at some key ports and the ongoing diversions around Africa continue to put a strain on the supply of tonnage.”
Strong Profits Fuel Investment in Newbuild Slots
The demand for additional ships to handle network delays has led carriers like Maersk to charter extra capacity. Since the Red Sea crisis began, Maersk has secured approximately 172,000 TEU of extra capacity to “mitigate the impact of the disruptions on our customers’ cargo flow.” This has depleted the charter market, further exacerbated by new services exploiting inflated spot rates.
In June and July, around 500,000 TEU of newbuild container vessels were delivered, with over 100,000 TEU delivered this month alone. Notable new deliveries include the 16,592 TEU methanol-dual fuel powered Alexandra Maersk. Despite the influx of new vessels, carriers are focused on managing disruptions and preparing for the break-up of major alliances like 2M and THE Alliance.
Approximately 1 million TEU of capacity is still scheduled for delivery this year, with an additional 2 million TEU expected in 2025. Carriers, buoyed by strong half-year profits, are investing in newbuild slots at Asian shipyards, with over 2 million TEU of orders confirmed for 2023.
However, these newbuilds will not be delivered until 2027 at the earliest. Zim anticipates “even better results in the second half of 2024.”
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Source: The Loadstar
