<p>Q1 2023</p>
SUPPLY
New ship deliveries and congestion easing have increased available capacity, leading to a decline in ocean freight rates. In January, demand decreased by 9.9%, but container fleet size grew by 4.0%.
The global container shipping market has experienced a deterioration in its fundamentals, which is evident from the sluggish growth of global demand by just 1.5% in 2022 as compared to 2019, while the fleet grew by 11.9%. This trend is causing concern for stakeholders in both the supply and demand side of the market.
The market's decline has led to more demolition, but it may not be enough to balance market fundamentals. Despite more capacity being removed than last year, it's only equivalent to one Ultra large ship.
The fleet is expected to grow by 5% in 2023 and 7.5% the following year. In Q1, 278,000 TEU of new ships were delivered, including the world's largest container ship, MSC Irina, while only 26,000 TEU were demolished.
New record-breaking ships aren't the most popular types. The largest increase in fleet size over the last two years has been for ships between 12,000 and 17,000 TEU, as these ships offer more flexibility compared to those above 17,000 TEU. They have also proven to be the most popular type of ship ordered by carriers in recent years.