Seven percent of container ships are built in Chinese shipyards

An unprecedented container shipbuilding boom has pushed the global orderbook to a record high. This record-breaking volume reflects robust demand for new capacity, but also raises concerns that, with the impending delivery boom, the market could relapse into a decade-long overcapacity.

Container shipping market research firm Linerlytica stated in its latest report that, following the ordering boom of the past 12 months, the current container ship orderbook has reached a record high of 10.4 million TEUs. The orderbook as a percentage of the existing fleet has climbed to 31.7%, the highest level since 2010.

Linerlytica warned that the last time the orderbook as a percentage of the existing fleet exceeded this high was between 2004 and 2009, when the massive orderbook led to a decade-long oversupply that took the container shipping industry a decade to absorb. More than one million TEUs of newbuildings are still under construction and scheduled for delivery by the end of this year.

The Linerlytica figure of 10.4 million TEUs is higher than that of competing data providers. According to Clarksons, the container ship order book currently stands at 9.87 million TEUs, also at a record high.

Since the beginning of this year, container shipping giants, led by Mediterranean Shipping Company (MSC), the world's largest container shipping company, have continued to expand their ship ordering efforts. In February, MSC signed an order with Changhong International for four 21,700 TEU dual-fuel LNG-powered container ships. In April, MSC placed an additional order for six 22,000 TEU dual-fuel LNG-powered container ships from Hengli Heavy Industry. In June, MSC placed an additional order for four 21,700 TEU dual-fuel ships from Changhong International and four 21,000 TEU dual-fuel ships from Waigaoqiao Shipyard. In July, MSC placed an additional order for two similar ships from Changhong International, three 21,000 TEU dual-fuel ships each from Hantong Shipbuilding Heavy Industry and China Merchants Heavy Industry (Jiangsu), and two 22,000 TEU dual-fuel ships from Hengli Heavy Industry.

CMA CGM, the world's third-largest container shipping company, has also placed orders this year for 12 18,000 TEU dual-fuel LNG-powered vessels from Jiangnan Shipyard and HD Korea Shipbuilding & Offshore Engineering. Recent news reports indicate that CMA CGM is planning to order up to 12 containerships in the 21,000 to 24,000 TEU class and has sent inquiries to several Asian shipyards. This marks CMA CGM's first order for ultra-large containerships exceeding 20,000 TEU in two years.

Orient Overseas Container Line, a subsidiary of COSCO Shipping Group, the fourth-largest shipping company by capacity, placed orders in April for a total of 14 18,500 TEU methanol dual-fueled containerships from COSCO Kawasaki in Nantong and COSCO Kawasaki in Dalian. Ocean Network Express (ONE), ranked sixth, has placed an order for eight and four 16,000 TEU dual-fuel LNG-powered containerships from HD Hyundai Heavy Industries in South Korea.

Evergreen Marine, ranked seventh, ordered 11 of the world's largest 24,000 TEU dual-fuel LNG containerships earlier this year from shipyards in China and South Korea, with five being built by Guangzhou Shipyard International and six by Hanwha Marine. Recently, Evergreen Marine announced plans to order 12 to 14 14,000 TEU dual-fuel LNG-powered Neo-Panamax containerships and has officially invited bids from shipyards.

Yang Ming Marine Transport, ranked tenth, has ordered 13 8,000-15,000 TEU containerships this year, including six 8,000 TEU methanol-ready vessels built by Imabari Shipbuilding in Japan and seven 15,000 TEU dual-fuel LNG-powered vessels built by Hanwha Marine.

Meanwhile, Maersk, ranked second, is planning to order up to 12 18,000 TEU dual-fuel LNG-powered containerships and is inviting shipyards to submit bids for packages of 8+4 vessels and 6+6 vessels. South Korea's HMM, ranked eighth, recently issued a request for proposals to three major South Korean shipbuilders: HD Hyundai Group, Hanwha Marine, and Samsung Heavy Industries, requesting bids for a contract to build six 13,000 TEU dual-fuel LNG-powered containerships.

Previously, Clarksons, in its first-half order book, noted that while overall global newbuilding orders in 2025 declined compared to the record-breaking 2024 figure, containership orders maintained strong growth. In the first half of the year, new containership orders reached 201 units, totaling approximately 1.92 million TEU. While this growth rate slowed compared to the record high of 4.6 million TEU for the entire year of 2024, it was still double the ten-year average.

Clarksons data shows that, calculated on a CGT basis, new containership orders reached 8.7 million CGT in the first half of this year, representing approximately half of the global new ship order book. Chinese shipbuilders maintained their dominant position in the container ship construction market, securing orders for 134 units totaling 1.17 million TEU in the first half of the year, representing a market share of approximately 61%.

The vast majority of containership orders currently are being built by Chinese shipbuilders. According to Clarksons data, seven of the top ten monohull yards globally with the largest containership orderbook are from China. These are the top three: New Era Shipbuilding (73 ships, approximately 3.9 million CGT), New Yangzi Shipbuilding (72 ships, approximately 3.4 million CGT), and Zhoushan Changhong International (50 ships, approximately 3 million CGT). The fifth to seventh-ranked companies are Shanghai Waigaoqiao Shipbuilding (42 ships, approximately 2.2 million CGT), Hengli Shipbuilding (Dalian) (28 ships, approximately 2.2 million CGT), and Yangzi Xinfu (30 ships, approximately 2.2 million CGT). Furthermore, ninth-ranked Jiangnan Shipyard (31 ships, approximately 2 million CGT) is also in the list.

Meanwhile, only three South Korean shipbuilders made the top ten: fourth-ranked HD Hyundai Heavy Industries (39 vessels, approximately 2.4 million CGT), eighth-ranked HD Hyundai Samho (41 vessels, approximately 2.1 million CGT), and tenth-ranked Samsung Heavy Industries (26 vessels, approximately 1.7 million CGT).

The growing orderbook has sparked industry concerns about future overcapacity in the market. Linerlytica predicts that the growth of the containership fleet will continue to outpace demand, and the market supply-demand imbalance is expected to persist until 2029.

According to data from freight rate platform Xeneta, the global fleet size index currently stands at 145 points, with 2019 as the base point of 100. During the same period, the global container shipping demand index has only increased from 100 to 113 points. Even accounting for the increase in TEU-miles associated with sailing around the Cape of Good Hope, the demand index has only risen to 130 points, far below the growth in capacity.

Xeneta said in the report that against the backdrop of severe overcapacity in the global fleet, container shipping companies are facing huge challenges in trying to prevent freight rates from falling further.