Container ships: freight rates are falling

Container freight rates are falling due to the increase in shipping capacity as a result of the delivery of new ships this year, but also in view of the expected gradual return of container ships from the Red Sea, which is estimated for the second half of 2025.

Market analysts have also highlighted that if US President Trump's announcements to impose tariffs on products from China, Europe, Canada and Mexico are implemented, it is likely to hurt personal and corporate consumption in the long run while reducing future cargo demand in the container market.

Given the trade policies between countries, changing trade routes with new alliances cannot be ruled out.

New vessels

According to the Container Shipping Outlook Report by global consultancy AlixPartners, an additional 200 ships will be delivered this year, expanding the fleet by 2 million TEUs, an increase of approximately 6%, after older ships are expected to be phased out.

In addition, the return of container ship capacity diverted from the African route to the Suez Canal, together with a massive supply of new ships "could upset the supply and demand balance, drive down rates and return the industry to years of overcapacity".

Last year almost 11 %, i.e. 3 million TEUs of new capacity were added to container traffic, but this was absorbed by the additional capacity needed due to the diversion of shipping routes via the Cape of Good Hope.

According to Alix Partners, the total container fleet on European trade lanes has increased by 31 %.

The report also states that the launch of the Gemini partnership between Maersk and Hapag Lloyd on 1 February represents one of the industry's boldest efforts to address the reliability challenge by offering better global market coverage, cost savings, reliable routes and environmental benefits.

"If successfully implemented, more than 340 vessels operating in a hub-and-spoke network could offer a viable alternative to the port-to-port model," the company said.

naftemporiki.gr/ gnews.cz - RoZ