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No ordering spree in container shipping in sight. A flash analysis.

During the COVID-19 pandemic, profits in the container shipping sector have risen remarkably along with the importance of international freight traffic. One might assume that this would logically lead to a surge in orders for newbuilds. Yet the opposite is the case: the orderbook is still near record lows. Whereas it stood at over 60% of the existing fleet in the financial crisis, it currently stands at around ten per cent. This comes at a time when a growing part of the active fleet is approaching scrapping age.

What are the reasons for this paradoxical situation? Technological and regulatory uncertainties play a key role, alongside market developments.

The current Flash Analysis Maritime Industries: “No ordering spree in container shipping in sight", a product of the Credit Analysis department of KfW IPEX-Bank, takes a look at these and other aspects.

Author: Ralph Johann

Published: February 2021