Need a quotation?

Dear Customers, if you wish to receive a quotation, we kindly ask you to fill in below form. Once the form has been duly filled and submitted, the rates will be quoted to you.


Skip to Content

Blog Archives

China yards dominate in boxship orders

Chinese shipyards hold the lion’s share of container ship orders, with at least half of vessels under construction, followed by 34% for South Korean yards and just 8% for Japanese yards.

The figures, pulled from S&P Global Intelligence’ Sea-web data, also show how the Japanese shipbuilding industry is declining due to cheaper manpower costs in China.

The statistics show that there are currently 876 container ships of 6.88 million TEU on order globally. Of these, 514 vessels of 3.66 million TEU, amounting to 53% of the global total, are being constructed in China. In South Korea, 266 container ships of 2.33 million TEU are being built. Japanese shipyards are building 85 boxships of 581,248 TEU.

The Chinese shipyards leading in the boxship orders are Yangzijiang Shipbuilding (holding orders of 94 ships), Shanghai Waigaoqiao Shipbuilding (34 ships), New Times Shipbuilding (31 ships), Jiangnan Shipyard (21 ships), and Hudong-Zhonghua Shipbuilding (16 ships).

S&P’s data showed that between 2009 and 2020, as the container freight market tanked following the global financial crisis in 2008, boxship newbuildings declined, totalling less than 2 million TEU in October 2020, a 17-year low.

However, the situation was reversed when container freight began rebounding in Q3 2020, due to Covid-19-related logistical bottlenecks, and the momentum has continued, albeit with some corrections.

As liner operators made high profits during the market boom, they gravitated towards vessel owning to manage rising charter costs. The data showed that over 50% of the newbuilding orders are from liner operators and the rest are from tonnage providers. MSC has the highest number of vessels under construction, with over 1.5 million TEU on order.

In 2021, container vessel newbuilding orders exceeded 4 million TEU and the current orderbook for container ships now surpasses that for bulk carriers and tankers, a historical first. This means that the current boxship orderbook is more than trebled from the low levels seen in October 2020.

In terms of vessel size, ships in the 12,000 to 17,000 TEU range are the most in demand, accounting for nearly 50% of all boxships on order.

Source: Container News


Freight Costs From China To Us Surges By 200%

The shipping rates of containers from China to the USA have been impacted severely as shipping costs from China shot up 200% from pre-pandemic levels.

Freight Costs From China To Us Surges By 200%The profits of various companies especially in sectors such as engineering, auto components, pharma and medical devices have been affected because of the increase in sea freight costs accompanied by shortages of containers. The cost of air shipment from China to the USA has also increased from 50-200%, making matters worse.

The container shortage has been attributed to China by industry experts as it has a dominant share in global trade and also in container-making. There have been 10-15 days delays because of congestion at the ports with unclear containers lying at the warehouses.

Another reason for slowed global container turnaround rates can be attributed to the outbreak of the Delta variant Covid-19 in many countries.

The ongoing Typhoons on various parts of Southern China is also a major reason behind the surge in prices affecting the world’s most important method for transporting everything from gym equipment and furniture to car parts and electronics.

The rates have been jacked up by the shipping companies by adding peak season charges and other additional charges, which varies depending on the shipping route and container sizes.

Even though the first quarter has been slow due to logistics’ bottlenecks, the Pharma exports which are valued at around $25 billion for 2021, have been growing around 14% year on year.

The surge in freight prices is the latest blow to the big companies which were already facing immense troubles since early 2020 after Covid 19 put brakes on global economies and triggered huge changes in the flow of goods and healthcare equipment around the world.