Contracts for container ships hit new record
Container ship contracting has surpassed 10 million teu since the beginning of 2021, marking a significant expansion of the global fleet. This surge includes 1.59 million teu contracted so far in 2024, which is among the highest levels since 2008.
The new contracts represent a 44% rise in fleet capacity compared to early 2021. Despite this, only 0.24 million teu have been recycled since 2021, raising the average age of container ships and potentially leading to oversupply if the trend continues alongside resolving crises such as in the Red Sea.
The expanded fleet has been crucial in preventing a major supply chain crisis amid growing demand from longer voyages. With a projected fleet growth of at least 12% by the decade's end, balancing ship supply and demand remains a challenge. (pb)