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600 ships! The global shipping market set off a "crazy" ship grab war

600 ships! The global shipping market set off a "crazy" ship grab war

Column:Industry News    Date:2021/7/21 11:12:21    Viewed:

Orders for more than 300 new ships surged nearly 8 times year-on-year, and 277 second-hand ships doubled year-on-year. In the first half of the year, the number of new ship orders and second-hand ship transaction prices in the container ship market both increased, making it difficult to find one ship in the container shipping market Next, the shipping company set off a crazy ship grabbing battle.


About 300 new ships have been ordered, and the number has increased by 8 times


According to VesselsValue’s latest statistics, the number of new container ship orders reached 286 vessels of approximately 2.5 million TEU in the first half of the year, with a total value of US$21.52 billion, which is more than two times higher than the record level of 99 vessels of US$9.2 billion in 2011. . Compared with the same period last year, it has increased by 790%. In 2020, the order volume of container ships was only 120 8.8 billion U.S. dollars, and 106 6.8 billion U.S. dollars in 2019.


VesselsValue data shows that the vast majority of container ship orders this year are concentrated in the field of new Panamax vessels, with a total of 112 vessels worth 13 billion U.S. dollars, while orders for 2020 are only 32 worth 1.97 billion U.S. dollars.


In terms of shipowner classification, Seaspan, the world’s largest independent container ship owner, has the highest order volume, totaling 40 603,000 TEUs, valued at 3.95 billion U.S. dollars; Evergreen Shipping ranked second with 22 orders of 2.82 billion U.S. dollars; CMA CGM, Wan Hai Shipping and HMM (formerly Hyundai Merchant Marine) are ranked 3-5.


Alphaliner's statistical results are even higher. In the first half of the year, China, Japan, and South Korea received more than 300 container ship orders, totaling 2.88 million TEU, accounting for 11.8% of the current total capacity of 24.5 million TEU.


Driven by the crazy order wave, the number of container ship orders has also increased. As of June 30, the number of hand-held orders has increased from a low of 2.29 million TEU in the same period last year to 4.94 million TEU, and the proportion of hand-held orders in the existing fleet has also increased from last year. In the same period, 9.4% increased to 19.9%, of which the 11,000-25,000TEU field of hand-held orders accounted for as much as 50% of the existing fleet.


At the same time, the price of newbuildings for container ships has risen by 15% so far this year.


Container Ship.jpg


Calculated in terms of number of vessels, this year's largest transaction volume of container ships is 100-2999TEU feeder ships, a total of 267 second-hand ship transactions, an increase of 165.1% year-on-year, a total capacity of 289636TEU. However, in terms of capacity, the transaction volume of 5000-9999TEU ultra-Panamax container ships is the highest, and the total capacity of 54 second-hand ships reaches 358874TEU. Large ships are relatively unpopular in the second-hand ship market. Only 5 container ships of 10,000 TEU and above changed hands in the first half of the year.


Consistent with the soaring trend of container ship freight and rent, the second-hand price of container ships has also risen several times. VesselsValue's data shows that among the feeder ships that have announced transaction prices, the average second-hand ship price in June was US$17.6 million, more than four times the US$4 million in the same period last year.


According to Clarkson’s data, according to the number of TEUs of container ships, the prices of large, medium and small ships also show an increasing trend. The most prominent ship type is in the range of 2,600TEU to 9,100TEU, and the price of ships has risen by 12 million to 12.5 million U.S. dollars. Greatly welcomed by the market.


According to analysis by industry insiders, due to the continuous increase in transportation demand and rising freight rates, the growth rate of new shipping capacity has not kept up with the growth rate of this wave of demand, which has prompted a significant increase in the volume and price of second-hand shipping transactions this year.


Peter Sand, Chief Shipping Analyst of BIMCO, said: “In order to obtain additional capacity in the short term to meet current demand, consolidation companies can only choose the chartering and second-hand ship market. As the available capacity is quickly sold out, the chartering market is becoming more and more intense. It is becoming more and more expensive and even difficult to find a single ship. Therefore, the shipping company can only choose to buy existing second-hand ships. At present, the cost of chartering or buying ships is quite high."


"From the seller's point of view, the current second-hand ship prices provide a huge incentive to sell, because the profits from selling the ship today may make up for the ship's loss throughout its life cycle."


Clarkson attributed the main reason for the surge in second-hand ship transactions to the overall improvement in the shipping market. In the first half of the year, the Clark Sea Index averaged US$21,717 per day, a year-on-year increase of 27%, which is higher than the average level since January 2009. It is 64% higher, the highest semi-annual data level since 2008. Among them, container ships are undoubtedly the most "prosperous" ship type field, setting a record high.


The Baltic International Chamber of Shipping (BIMCO) cited data from VesselsValue.jpg


Calculated in terms of number of vessels, this year's largest transaction volume of container ships is 100-2999TEU feeder ships, a total of 267 second-hand ship transactions, an increase of 165.1% year-on-year, a total capacity of 289636TEU. However, in terms of capacity, the transaction volume of 5000-9999TEU ultra-Panamax container ships is the highest, and the total capacity of 54 second-hand ships reaches 358874TEU. Large ships are relatively unpopular in the second-hand ship market. Only 5 container ships of 10,000 TEU and above changed hands in the first half of the year.


Consistent with the soaring trend of container ship freight and rent, the second-hand price of container ships has also risen several times. VesselsValue's data shows that among the feeder ships that have announced transaction prices, the average second-hand ship price in June was US$17.6 million, more than four times the US$4 million in the same period last year.


According to Clarkson’s data, according to the number of TEUs of container ships, the prices of large, medium and small ships also show an increasing trend. The most prominent ship type is in the range of 2,600TEU to 9,100TEU, and the price of ships has risen by 12 million to 12.5 million U.S. dollars. Greatly welcomed by the market.


According to analysis by industry insiders, due to the continuous increase in transportation demand and rising freight rates, the growth rate of new shipping capacity has not kept up with the growth rate of this wave of demand, which has prompted a significant increase in the volume and price of second-hand shipping transactions this year.


Peter Sand, Chief Shipping Analyst of BIMCO, said: “In order to obtain additional capacity in the short term to meet current demand, consolidation companies can only choose the chartering and second-hand ship market. As the available capacity is quickly sold out, the chartering market is becoming more and more intense. It is becoming more and more expensive and even difficult to find a single ship. Therefore, the shipping company can only choose to buy existing second-hand ships. At present, the cost of chartering or buying ships is quite high."


"From the seller's point of view, the current second-hand ship prices provide a huge incentive to sell, because the profits from selling the ship today may make up for the ship's loss throughout its life cycle."


Clarkson attributed the main reason for the surge in second-hand ship transactions to the overall improvement in the shipping market. In the first half of the year, the Clark Sea Index averaged US$21,717 per day, a year-on-year increase of 27%, which is higher than the average level since January 2009. It is 64% higher, the highest semi-annual data level since 2008. Among them, container ships are undoubtedly the most "prosperous" ship type field, setting a record high.


Clarkson will second-hand ship.jpg


According to the forecasts of the three major shipping research and research institutions, Alphaliner, Clarkson, and Drewry, the annual increase in demand for cargo transportation in 2021 will be 5.8%, 6.3%, and 8.7%, respectively, and the growth in capacity will be 4.2%, 4.6%, and 3.7% respectively; in 2022 Transportation demand increased by 4%, 3.4%, and 4.7% each year, and capacity growth was 3.1%, 2.5%, and 2.5% respectively. It can be seen that the three major shipping research institutions are more optimistic about maintaining market demand growth in the past two years.


The third season is the traditional peak season for shopping festivals in Europe and the United States. From the back-to-school wave, Thanksgiving to Christmas, demand continues to heat up, and the overall container freight rate continues to rise. The Shanghai Aviation Exchange last Friday (July 16) updated According to the quotation, the freight rate per FEU from the Far East to the US East and the US West reached 9665 and 5334 yuan respectively, and the European line also exceeded US$7000 per TEU for the first time.


The "crazy" increase in freight rates seems to be far from ending. At present, freight rates on major routes have broken through historical highs, and freight forwarders are planning a new round of price increases, which will make a lot of money for at least the next two years. .


Another wave of large shipbuilding era seems to be coming, but the dark cloud of excess capacity seems to have begun to envelope the container shipping industry.

  
  
  
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