SIMIC

With freight rates setting new records every week, cash-rich container shipowners have splurged on new tonnage as never before, reports Singapore's Splash 247.

"The Shanghai Containerised Freight Index (SCFI) has continued its remarkable climb. The reference index for spot box shipments jumped another 45 points last to a new record of 4,386 points," noted Splash.

Fresh orders included 619 container vessels being now on order for future delivery - 381 in 2021 alone. Although, never has 3.44 million TEU being ordered in such a short time span, still, it's not a record for the total orderbook, as 6.8 million TEU were on order by the end of July 2008, compared to 5.3 million TEU today, said BIMCO.

"Today the containership order book holds 5.3 million TEU of shipping capacity. This set to be added into the fleet from 2023 and onwards," said BIMCO's top analyst Peter Sand.

"Going into 2021, the order book only stood at 2.5 million TEU. Since then, a record-high 3.3 million TEU has been ordered. Shipowners really like to invest in the business now."

The size of the box ships is still a crucial factor, but there are also other equally important parts, according to Mr Sand who added "your ships must be ready to fit emerging trade lanes - and many of them will be scrubber-fitted."

According to BIMCO, 60 containerships with a carrying capacity of 16,000 TEU each were ordered in February, March, April, and June by just five different owners. The one half of them was ordered by two Top-4 tonnage providers and one minor, and the other half by operating liner companies.

Said Mr Sand: "It's very much a sign of times too, you go big, or you don't go at all. You place orders for four, five and six ships or as much as 20 units in one go, at one yard only. The buying power when you're spending US$2.5 billion is significant."