Containership orderbook back to “normal” size

One year ago the containership orderbook stood at 4.9 million TEUs. Today, it totals 3.9 million TEUs. Deliveries of 1.3 million TEUs of newbuilt vessels have diminished the orderbook in combination with few signings of new contracts. The total orderbook is down by 21% over the last year. That development stands in sharp contrast, in particular, to the dry bulk orderbook which remains very high, but also to the tanker orderbook, which is down by 8%. In the following piece we will, however, focus primarily on the container trades.

This low level of new orders has brought the orderbook-to-fleet ratio down to 28%, which was the average ratio level until the ordering boom took off towards the end of 2003. The orderbook-to-fleet ratio reached its peak in November 2007 at 61%. The fact that the ratio is now back to normal means that owners may again be considering ordering, and if so, we hope at a moderate pace. New orders must be carefully considered, as massive deliveries over the past few years have resulted in a negative supply-demand balance, with demand contracting as a result of the global financial crisis. The balance has been restored via the temporary idling of ships as well as slow-steaming, but tonnage remains abundant. BIMCO expects 1.6 million TEUs could be contracted in 2011. (source: Bimco)

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