Demand Calling for Record Number of Containerships

If there’s any doubt that things are gloomy in the world economy look no further than the most recent forecast for new containership orders that are on schedule to be delivered in 2012. if demand is low, then shipping companies aren’t doling out money for new ships that will sit in port and slowly gather rust. There’ll be no sitting idle for the foreseeable future as Asia and Africa continue to lead a global economic recovery that is pulling the rest of the world along with it.

Container Ship

Record containership deliveries on the way

Despite the fact the developed countries are having  issues, the developing world is full steam ahead. A statement from the world bank in January noted how rare it is for this phenomenon to occur. It seems that there is a big shift going on. Not only is there a shift in momentum, but also in demand, hunger for a better quality of life and all of it being driven by the consumers of the developing world. Each one of these nations that we have covered recently, mostly noted in out 2011 growth forecast post, are experiencing major development from the ground floor, up.

New infrastructure, is leading to new-found wealth for many, which is in turn greasing and churning the wheels of commerce. People in places that were once obscure villages are seeing towns and cities sprout up around them and the excitement is catchy. Look no further than the report yesterday from Bloomberg, that China gained 9.5% in the second quarter of this year, ahead of analyst expectations.

The same analysts are calling for extended growth of 9%+ as industry moves inland and pushes more people above the poverty line and gives them a new sense of life, renewed by the hustle and bustle of economic activity that is enveloping each town as it moves west.

According to Braemar Seascope’s latest Containership Fleet Statistics report, 2012 is set to be the biggest year for containership newbuilding deliveries in history.

In terms of TEU capacity entering the cellular fleet, containership deliveries this year are expected to reach 1.55M TEU, eclipsing the previous record of 1.52M TEU achieved during 2007. Braemar Seascope expects a cellular fleet expansion in the region of 9.5% for 2012, increasing the available capacity to 16.8M TEU.

The report says that since January 2010, owners have ordered 1.7M TEU of capacity in boxships with a capacity of 5,100 TEU or more compared with 0.4M TEU of smaller ships (below 5,100 TEU).

Image: OceanLinerMuseum

Sources: WorldCargoNews, Bloomberg


2 Responses to “Demand Calling for Record Number of Containerships”

  1. 1 Jarret
    August 29, 2011 at 2:36 pm

    Hi, Iam currently looking it to sea container investment, though I dont know where to start. do you know any viable businesses that I can contact?

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Gain unearned income. Own shipping containers and lease them to us. We contract with companies who need to ship materials.

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