Report Warns Of Looming Overcapacity In Container Ship Market | OilPrice.com

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Container shipping is set to see a wave of new vessels entering service, causing overcapacity and lower demand. Megamax ships will lead the pack, arriving this year & putting pressure on trans-Pacific rates in 2024.

- Feb 24, 2023, 1:00 PM CST

“The change will be obvious from mid-March,” Alphaliner analyst Stefan Verberckmoes told American Shipper, adding: “This newbuilding wave is coming at a time of shrinking demand.” Mediterranean Shipping Co. , the world’s largest ocean carrier, is taking delivery of by far the most mainline capacity through 2025. It has 92 such vessels in the pipeline, including 33 in the remainder of this year.

In terms of delivery timing, the largest wave of Megamax arrivals is arriving this year, raising concerns on imminent Asia-Europe overcapacity. At one end of the spectrum is the view that carriers have stupidly shot themselves in the foot yet again, succumbing to the classic boom-and-bust shipping cycle pattern, over-ordering and locking in losses for years to come — that their ordering behavior is “madness.”

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