Container ship capacity deliveries reach new record of 1 million TEU in the first 4 months of 2024

A record was set as more than 1 million TEU of container ship capacity was delivered in the first four months of 2024, an increase of nearly 80% compared to the previous record.

Container ship

“In 2023, 2.3 million TEU of container ship capacity was delivered, beating the former all-time high by 37%. Year-to-date another record has been set as more than 1 million TEU has already been delivered during the first four months of the year, an increase of nearly 80% compared to the previous record,” said Niels Rasmussen, Chief Shipping Analyst at BIMCO.

Because old ship demolition activities have only been carried out with 19 small ships so far, the fleet size has expanded by nearly 1 million TEU, an increase of 3.5% compared to the beginning of the year. This adds to last year's fleet growth of 8.2%.

“Due to record deliveries the order book has declined. However, as 1.8 million TEU has been contracted during 2023 and 2024, it has only declined by 1 million TEU and now stands at 6.1 million TEU, 21% of the current fleet size. As a result, the order book’s share of the fleet is more than twice the size than it was before the COVID pandemic and liner operators’ contracting spree began,” said Rasmussen.

In 2024 the order book contains 2 million TEU for delivery and delivery volumes for the year are on target to exceed 3 million TEU, 30% higher than last year’s record. In 2025, delivered ship capacity is expected to be nearly 2 million TEUs, this number ranks third highest, only lower than 2023 and 2024.

However, the capacity of ships delivered is still not a record when considering the total size of the fleet. In 2024, it is expected that ship capacity will be delivered at 11% of the total fleet capacity at the beginning of the year. Previously, in 2008, the delivered container ship capacity accounted for 14% of the total fleet capacity.

Record high container ship capacity deliveries are expected to create a large oversupply in the market, and while this will weigh on the market in 2023, it is likely that this year's ship capacity deliveries will contribute promoting global container shipping activities to continue to develop.

Due to the rerouting of ships through the Cape of Good Hope following attacks in the Red Sea by the Houthis, approximately 10% more capacity is needed to accommodate global container shipping.

“When ships start increasing sailings via the Red Sea and the Suez Canal, we will most likely see significant oversupply. Between 2019 and 2023, the fleet grew 21% while container volumes only grew 4%. Between 2023 and 2025, the fleet is expected to grow another 15%,” said Rasmussen.

Ship capacity delivered 2023 | Source: Clarksons Research