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The Container Shipping Boom: Navigating the Seas of Record-Breaking Growth in 2024

The Container Shipping Boom: Navigating the Seas of Record-Breaking Growth in 2024

The Container Shipping Boom: Navigating the Seas of Record-Breaking Growth in 2024

In the dynamic world of container shipping, 2023 marked a remarkable year with shipyards delivering 350 new container ships, boasting a total capacity of 2.2 million TEU (Twenty-foot Equivalent Unit). This achievement not only surpassed the previous record set in 2015 but also propelled the industry into a period of unprecedented growth. Niels Rasmussen, Chief Shipping Analyst at BIMCO, anticipates that this record is poised to be shattered yet again in 2024, setting the stage for an intriguing year in the container shipping landscape.

A Record-Breaking 2023:

The year 2023 witnessed a surge in new container ships entering the fleet, resulting in an 8% increase in capacity. This growth, the fastest since 2011, was particularly notable due to the scarcity of container ship recycling during this period. Ships exceeding 15,000 TEU continued their dominance, constituting a staggering 28% growth after the delivery of 1.3 million TEU in 2023.

The Dominance of Mega-Ships:

Notably, ships with a capacity exceeding 15,000 TEU continued to dominate deliveries, reflecting a trend that has persisted for several years. The segment experienced a robust 28% growth in 2023, contributing significantly to the overall surge in the container fleet’s capacity. This dominance is set to persist, with projections indicating that 478 container ships, with a cumulative capacity of 3.1 million TEU, are scheduled for delivery in 2024. This represents a 41% increase over the previous year, propelling the container fleet’s capacity to grow by an impressive 10% in 2024.

Recycling Challenges and Fleet Expansion:

Despite expectations of an increase in ship recycling in 2024, the container fleet is projected to expand by nearly 2.8 million TEU. If these predictions materialize, the container fleet is poised to surpass the 30 million TEU mark by the end of 2024, marking a historic milestone in the industry’s evolution. An additional 83 mega-ships, each exceeding 15,000 TEU, are set to be delivered in 2024, contributing 1.4 million TEU to this segment’s capacity and effectively doubling its capacity within just four years.

China’s Shipyard Dominance:

Chinese shipyards have emerged as the primary beneficiaries of the record-high orders, solidifying China’s position as the premier location for constructing container ships. An impressive 55% of all ship capacity scheduled for delivery in 2023 and 2024 is expected to come from Chinese shipyards. South Korean shipyards are projected to deliver 38% of the total ship capacity, reaffirming the dominance of Asian shipbuilders in the global container shipping industry.

Forecasting the Future:

As the container fleet’s capacity is set to grow by 10% in 2024, concerns about a potential imbalance between supply and demand come to the forefront. BIMCO forecasts a 3-4% increase in the demand for ship capacity, primarily driven by an anticipated surge in container volumes. However, this growth is expected to outpace the container trades, raising concerns about the industry’s efficiency.

Efficiency Challenges and Speed Reduction:

In an interesting twist, the average sailing speed of container ships has decreased from 14.3 knots in 2022 to 13.9 knots in 2023. Projections for 2024 suggest a further potential decline, impacting the fleet’s efficiency. This scenario may necessitate deploying an additional 3-4% in capacity to accommodate the anticipated volume increase in 2024.

Navigating Imbalances and External Disruptions:

The impending imbalance between supply and demand in 2024 poses challenges for the industry. Prolonged disruptions, such as those in the Red Sea, forcing ships to take alternative routes via the Cape of Good Hope, could further complicate the supply/demand balance. While disruptions may tighten this balance, they also introduce uncertainties that the industry must grapple with.

Looking Ahead: The Red Sea Situation and Beyond:

Niels Rasmussen offers a cautionary note regarding the potential for a market imbalance to resurface once the Red Sea situation is resolved. An additional three million TEU are slated for delivery during 2025-2026, and unless recycling efforts significantly increase, the industry could face challenges in maintaining equilibrium.


The container shipping industry is riding the waves of unprecedented growth, with 2023 setting new records and 2024 poised to push the boundaries even further. As mega-ships dominate deliveries, shipyards in China and South Korea play pivotal roles in shaping the industry’s landscape. However, challenges loom on the horizon, with concerns about imbalances, efficiency, and external disruptions demanding the industry’s attention. Navigating these challenges will be crucial for sustaining the momentum and ensuring the container shipping industry remains a key player in global trade.

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