A bullish year for global shipping : Container market experienced remarkable growth in 2024
BOSTON : The year 2024 has seen values rise to near-record levels across Container sectors of the shipping industry, fuelled by the post-covid shipping boom and a strong newbuild market according to Veson Nautical’s ‘2024 End- Of-Year-Report’.
Increased sailing distances from a prolonged Red Sea crisis became the main driver of demand in 2024 that culminated in global TEU-miles gaining c.16% year-on-year, supported by c.6% growth in global trade as CTS (Container Trade Statistics). As a result, one-year TC rates for Container vessels rose across all sectors and at the end of the year, Post Panamax earnings hit 73,330 USD/Day, more than double the levels seen at the same time last year and up by an impressive c.111% year-on-year. Supported by firm demand and strong earnings, values increased dramatically across all sub sectors and age categories over the course of the year. For example, in the Post Panamax Container sector 15 YO vessels of 7,000 TEU increased by as much as c.90.8% to reach USD 57.72 mil. Earlier this year, the Post Panamax Paris II (6,447 TEU, April 2001, Hanjin Heavy Ind) sold to MSC for USD 20 mil, VV Value USD 16.41 mil, more recently the Post Panamax Brussels (6,078 TEU, May 2000, Hanjin Heavy Ind) sold to Chinese buyers for USD 26 mil, VV Value USD 20.01 mil.
The report states that the newbuild market experienced continued growth, with a notable rise in orders, particularly in the Post/Panamax and Capesize sectors. Chinese dominance in both ordering and shipyard production remains a defining trend, further consolidating their position in the bulker industry.
New ship orders were up by around 76% year-on-year based on 321 deals including options, compared to 182 orders in 2023. The ULCV/New Panamax was the most popular accounting for well over half of Container orders placed, with a share of c.61% with 196 vessels ordered. Post/Panamax Containers ranked second with 92 orders placed, equating to c.29%. In third place, is the Sub/Handy Container sector with just 19 new orders and a share of c.6%. Finally in fourth place, the Feedermax sector with just 14 new orders, equating to c.4%. Notable headline deals: • 12 x Post Panamax Container vessels of 9,200 TEU, ordered by Hapag Lloyd to be delivered between 2027-2028 and scheduled to be built at New Times Shipbuilding in an en bloc deal for USD 140 mil each, VV Value 138.8 mil. Also 18 x New Panamax Containers of 16,800 TEU, set to be delivered between 2027-2028 and scheduled to be built at Jiangsu Yanzijiang, in an en bloc deal for USD 220 mil each, VV Value USD 217 mil each. • 6 x ULCV vessels of 19,000 TEU, scheduled to be built at Shanghai Waigaoquiao and delivered in 2028, contracted for USD 210 mil each, USD 237.21 mil each. 12 x ULCV vessels of 19,000 TEU scheduled to be built at Zhoushang Changhong and delivered between 2027-9, contracted for USD 210 mil each, VV Value 216.17 mil each. • 8 x New Panamax vessels of 11,500 TEU scheduled to be built at Penglai Zhongbai Jinglu and delivered in 2027-8, contracted for USD140 mil each, VV Value USD 137.98 mil each. Also 10 x ULCVs of 21,000 TEU, scheduled to be built at Jinagsu New Hantong and delivered between 2027-8, VV Value 241.35 mil. All ordered by MSC.
Container sector continues its meteoric rise
The report states that increased sailing distances from a prolonged Red Sea crisis became the main driver of demand in 2024 that culminated in global twenty foot equivalent unit-miles (TEU-miles) gaining around16% year-on-year, supported by around 6% growth in global trade. As a result, one-year time charter (TC) rates for container vessels rose across all sectors and at the end of the year, Post Panamax earnings hit US$73,330/day, more than double the levels seen at the same time last year and up by an impressive ~111% year-on-year.
“The container market experienced remarkable growth over the past year, driven by increased demand, rising earnings, and a robust asset value resurgence across all sectors,” Rebecca Galanopoulos, Senior Content Analyst says. “This is also reflected in new ship orders which were up by around 76% year-on-year based on 321 deals including options, compared to 182 orders in 2023.”