- Red Sea instability reshaped routing and ton-mile demand
- Asset values diverged sharply across vessel segments
- Newbuilding and transaction activity declined overall
- Chinese shipyards strengthened dominance across sectors
The global shipping market in 2025 delivered sharply contrasting outcomes across sectors, shaped by ongoing geopolitical disruption, regulatory pressure, and shifting trade patterns, according to the 2025 End-of-Year Market Report by Veson Nautical. Persistent instability in the Red Sea continued to influence routing strategies, extending voyage distances and supporting ton-mile demand in certain segments, while regulatory measures such as FuelEU Maritime increased operational and commercial complexity, reports SAFETY4SEA.
Market Overview
The report highlights pronounced divergence in asset values by vessel type and age profile. Capesize Bulkers and mid-sized Container vessels recorded strong gains, while Product Tankers and LNG carriers faced notable headwinds. Overall transaction activity declined, reflecting elevated asset prices and increased owner caution, although liquidity remained resilient in Crude Tankers and Containers.
Newbuilding orders contracted in several sectors amid geopolitical uncertainty, a tightening supply of available berths, and unresolved questions around alternative fuel technologies. Chinese shipyards further consolidated their dominance across multiple segments. Demolition activity rebounded modestly from historically low levels but remained subdued, as supportive earnings encouraged owners to extend the trading lives of aging vessels.
Bulkers
The Bulker market demonstrated resilience in 2025 despite a challenging operating environment. Asset values strengthened across most segments, led by Capesize vessels benefiting from Red Sea diversions and longer voyage distances. However, prices moderated in the final quarter as market sentiment softened.
Transaction volumes declined year-on-year, reflecting owner caution amid high asset values and uncertain earnings visibility. Newbuilding contracting fell to its lowest level since 2019. Chinese interests dominated both secondhand acquisitions and newbuilding orders, while participation from traditional maritime nations declined significantly.
Tankers
The Tanker sector experienced a year of recalibration, shifting away from the record activity levels seen in 2024. Asset values diverged markedly between crude and product segments. VLCCs, Suezmaxes, and Aframaxes posted consistent appreciation, while LR1 and MR segments faced sustained pressure, mirroring weaker underlying product trade fundamentals.
Newbuilding activity declined by 43% year-on-year as owners adopted a more cautious stance following previous ordering surges, although long-term fleet renewal needs remain. The secondhand market recorded 817 transactions, underscoring continued liquidity despite softer sentiment in Product Tankers.
Demolition activity increased modestly to 43 vessels but remains historically low as earnings continue to support fleet retention. Looking ahead to 2026, the sector faces a balance between incoming fleet growth from a substantial orderbook and demand shaped by global trade and geopolitical developments, with a clear bifurcation between crude and product tanker performance.
Containers
Container markets saw freight rates for 40ft units fall by more than 40% year-on-year, driven by US–China tariff volatility and weaker sentiment. Despite this, demand for secondhand Container vessels remained firm, supported by increased trade flows from Asia to emerging markets, nearshoring trends, and vessel cascading.
In 2026, a significant newbuilding delivery schedule is expected to expand global capacity by 5.8%, primarily in larger vessel segments. TEU-mile demand is forecast to weaken from mid-2026 as carriers resume Suez Canal transits, reducing sailing distances and ton-mile demand. As a result, supply could exceed demand by approximately 7%, placing pressure on freight rates and asset values. While mid-sized secondhand tonnage remains supported for now, increasing capacity and declining ton-mile demand point to a more challenging market environment ahead.
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Source: SAFETY4SEA
