The ageing global
container fleet will likely see a raft of newbuild orders placed this year and
next, despite future propulsion concerns, a new report from Braemar ACM
The broker is anticipating a pickup in new boxship orders in 2021 and
The broker is
anticipating a pickup in new boxship orders in 2021 and 2022, following on from
a sudden spurt of ultra large boxship orders seen in Q4 last year.
During the past
five years, 2016 to 2020, 4.3m teu was ordered, while 7.3m teu was ordered in
the preceding five years, Braemar ACM data shows.
container fleet has an average age of 13.5 years. Ten years ago the average age
was just nine years
“The trading fleet
is ageing, and we expect newbuilding investment to increase. Additionally, the recent
scramble for charter tonnage is likely to prompt liner companies to bolster
their owned fleet, in a strategy to reduce liner exposure during a cargo
surge,” the report states.
The six to 12
month rate for a 4,400 teu boxship increased by 7% week-on-week to $29,000 a
day, 105% above the 2020 average, as of last Friday 5 Feb 21 according to
Clarksons Research. In the smaller sizes, the six to 12 month rate for a 2,750
teu vessel rose 4% week-on-week to $20,750 a day as of last Friday, 92% above
the 2020 average.
Now, container fleet average age 13.5 yrs ; ten yrs ago, it was just
As of January 1
this year, the trading container fleet had an average age of 13.5 years .Ten
years ago, the average age was just nine years, Braemar ACM data shows.
trading fleet is ageing the most notably. Up to 4,000 teu, there are currently
880 vessels aged 20 years or more, and Bramar ACM expects that number to
increase to 1,150 by 2025 after allowing for assumed demolition
In 2020, 135
container ships with a total capacity of 1.23m teu were ordered, up 90%
compared to 2019.
Ordering in 2020
focused on ultra large tonnage ordered during the final quarter and feeders,
which were contracted throughout the year.
control most of the containership orderbook, with a 43% share, followed by
South Korea on 35% and Japan on 21%.
Chinese yards secured 60% of the containerships ordered in 2020..
estimates that fleet growth for full-year 2020 was 2.8%, compared to 3.9% in 2019.
Annual fleet growth for the last five years – 2016 to 2020 – has averaged 3.5%
per year. With the current orderbook, the broker expects the annual average
fleet growth for the next four years – 2021 to 2024 – to average about 2.5% per
Containership orderbook-to-fleet ratio is the lowest in decades says
investment bank Jefferies
In a bullish note to
clients earlier this week on boxship prospects for 2021, investment bank
Jefferies posited: “Containerships rates should remain elevated with vast GDP
growth and consumer spending while the containership orderbook-to-fleet ratio
is the lowest in decades.”