Container Newbuilds Forecast To Hit A 14-Year Low

According to Drewry, factors such stagnating trade and a growing surplus of shipping containers are resulting in a substantial decrease in newbuild container output. Research shows that newbuild construction is forecast to drop to its lowest level in 14 years, following a contraction of 71% year-on-year to 306,000 TEU in the first quarter of 2023, the lowest level since the same period of 2010.

While some recovery is anticipated throughout 2023,  the output for the full calendar year is not anticipated to surpass 1.8 million TEU, which is the lowest level since the “recession-ravaged” year of 2009, according to Drewry’s Container Equipment Forecaster.

Currently, the majority of container owners are focused on adjusting their equipment to better match current trading and vessel supply parameters, and to remove ageing or damaged boxes that have accumulated as a consequence of supply chain congestion over the period of the pandemic. This is expected to see approximately 2.8 million TEU retire in 2023.

Consequently, the global fleet of containers is forecast to contract 2% this year to 49.9 million TEU, representing the first fall in 14 years. And whilst global container shipping trade is expected to remain weak, a recovery in cargo demand is anticipated in subsequent years as the global economy gathers momentum.

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Yours sincerely,
Rachael Budd & The Transolve Global Team

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