Smaller ships take over as global trade routes shift

The shipping sector is changing as a result of the trend of international trade shifting from China to ports in other Asian nations. Owners are choosing to purchase smaller ships rather than ever-larger ones. Shipowners are abandoning the practice of purchasing ever-larger boats and switching to smaller craft as a result of the rerouting of global trade from China to ports elsewhere in Asia. According to shipbroker Braemar, just six container ships that can transport more than 17,000 20-foot containers, or TEUs as they are known in the industry, are scheduled to be delivered in 2025, compared to 17 in 2020.

In addition, 83 mid-sized ships with a capacity of 12,000 to 16,999 TEUs are scheduled to be finished in 2025—nearly five times as many as were built five years prior.

According to container market analysts, “the 16,000-TEU ship will become the popular workhorse for liner companies.” They also said that “tepid” global trade and a glut of “massive ships” have also decreased demand for large ships. Industry sources claim that the market for the largest carriers has also been impacted by the possibility of environmental laws and trade interruptions, such as the attacks on ships in the Red Sea last year. When Donald Trump returns to the White House this month, it is anticipated that this disruption will continue. The president-elect has promised to increase import duties from China.