/ By tjchinafreight ivy / Shipping

South Korean shipbuilding industry to stop?

Accepting so many orders, so many people, and no salary increase, this job can't be done!

In the face of the tough attitude of the employers, the all-out strike at Hyundai Heavy Industries, which began on April 27, not only did not stop, but the war continued to spread and escalate. Today, in addition to Hyundai Heavy Industries, the trade unions of seven other major shipyards in South Korea have also announced their participation in the "team" to conduct a joint strike with Hyundai Heavy Industries.

South Korean shipbuilding industry to stop?
South Korean shipbuilding industry to stop?

How much to live? Hyundai Heavy Industries Labor Union "leads" seven major South Korean shipyards to join the "team"

On May 4, the Hyundai Heavy Industry Union held a dispute resolution committee and decided to conduct a three-day partial strike from May 6 to 10, and a three-day general strike from May 11 to 13. The schedule after the 13th will be decided in the future, and the strike time may continue to be extended.

On May 2, the Federation of Korean Shipbuilding Trade Unions held a press conference at the Press Center of Ulsan City Hall and announced: "In order to save the Korean shipbuilding industry, we will conduct a joint strike struggle with Hyundai Heavy Industries."

The Korea Shipbuilding Trade Union Confederation was established in May 2015. It consists of trade unions of 8 shipyards including Hyundai Heavy Industries, Hyundai Mipo Shipbuilding, Daewoo Shipbuilding, Samsung Heavy Industries, Hyundai Samho Heavy Industries, Seongdong Shipbuilding & Marine, STX Shipbuilding & Marine, and HJ Heavy Industries. composition. The union includes almost three major Korean shipbuilding giants and other major Korean shipyards.

In order to protest the employer's rejection of the union's request to resume negotiations on the collective wage agreement in 2021, the Hyundai Heavy Industry Union convened a dispute resolution committee on April 25 and announced a general strike from April 27 to May 4. On April 27, the trade union of Hyundai Heavy Industries organized more than 8,000 members of the company's trade unions to gather on the main road of the Ulsan Shipyard and start a sit-in demonstration. In this regard, the company said tit-for-tat that if a strike is forced, it will completely withdraw the agreement on unsolved issues including the reinstatement of the dismissal, and will also take stern measures against all illegal acts that occur during the strike.

It is understood that after the South Korean shipbuilding industry laid off a large number of workers due to lack of orders in the mid-to-late 2010s, there was a serious shortage of workers. South Korean labor market data shows that the number of workers in the Korean shipbuilding industry has plummeted from about 200,000 in 2014 to about 90,000 in 2021, and due to the difficulty of automating many construction parts of the shipbuilding process, such as assembling internal equipment, This means that the new workforce cannot fully fill the gap.

In addition, most of the Korean shipbuilding companies are concentrated in the southeastern part of South Korea, far from the capital Seoul and close to the northern border. South Korean workers can earn higher wages in high-tech industries such as semiconductors, internet services and video games, while shipbuilding is now a less popular industry in South Korea. Shipyards also have difficulty recruiting young workers due to geographic issues.

The Korean Federation of Shipbuilding Trade Unions pointed out: "When the crisis was triggered by the downturn in the shipbuilding market in previous years, the shipyard management ignored the calls and demands of the labor unions and unilaterally laid off a large number of employees, resulting in the current manpower shortage crisis. Those who remain are also unhappy with the prolonged freeze on base salaries, reduced bonuses and the prospect of layoffs at any time."

It is reported that after the press conference on the same day, the Korea Federation of Shipbuilding Industry Trade Unions immediately held an emergency representative meeting of the eight shipyard trade unions to discuss fundraising for the struggle fund, a joint rally, and a general strike plan.

/ By tjchinafreight ivy / Shipping

How to apply for FMC airline qualification in the United States ?

A few days ago, the US Federal Maritime Commission (FMC) issued a notice that it will investigate the surcharges of eight ocean carriers - including related surcharges such as congestion surcharges related to the continued surge in freight demand.

Eight ocean carriers were asked to provide details of their congestion surcharges and any associated charges to the FMC's Enforcement Bureau. The expedited investigation requires carriers to provide evidence by August 13, 2021 that their surcharges are in compliance with the FMC's regulatory requirements.

How to apply for FMC airline qualification in the United States
How to apply for FMC airline qualification in the United States

What is US FMC?

FMC is the abbreviation of the Federal Maritime Commission. It is headquartered in Washington and has three functions: executive legislation, quasi-judicial and law enforcement. It is in charge of and supervises the maritime commercial activities mainly based on container shipping starting and ending in the United States. . Ocean carriers and brokers are regulated by it.

The role of FMC:

Manage water freight rates, charges and operations for cargo such as containers in U.S. coastal trade, foreign trade and re-export trade;

Manage the operations of the container ocean shipping industry and companies that provide container terminal handling facilities;

Approve, veto, outlaw or revise meetings and agreements between water carriers (shipping companies) in U.S. foreign trade and domestic cabotage and the contractual freight rate system they employ;

To develop regulations to address conditions that are detrimental to the U.S. shipping industry due to foreign laws or competition from foreign-flagged container ships and other freighters;

Hear allegations of various violations of maritime law and determine whether it is illegal.

How does China's NVOCC file with the US FMC

The specific reporting requirements of FMC include:

1. Tariff (public tariff) does not need to be reported to FMC, and the carrier must publish its published tariff through appropriate electronic means to ensure that anyone (including FMC) can easily inquire at any time.

2. Service contract: A written contract signed by one or more cargo owners and a single ocean common carrier or an agreement organization composed of multiple ocean common carriers in addition to the bill of lading or cargo receipt. According to the contract, the owner promises to provide a certain amount of goods or the proportion of the goods within a fixed period of time, the carrier or the carrier organization promises a certain price or price arrangement, and the agreed service level, including guaranteed space, transportation time, Port order or similar service content. The contract can also provide for the breach of contract by both parties.

3. The carrier must report the complete service contract or amendments to FMC before the goods are shipped. FMC has strict requirements on the format and content of contracts. Each contract must have an independent contract number (SC Number), and each change must have an Amendment Number arranged in sequence.

4. Except for the origin, destination, product name, minimum quantity guarantee, and contract validity period, other contract contents are kept confidential by FMC.

/ By tjchinafreight ivy / Shipping

Shipping from China to Vietnam

German and Chinese flag pair on desk over defocused background. 
German and Chinese flag pair on desk over defocused background. 

Shipping from China to Vietnam

Sea freight from China to Vietnam

Sea freight from china to vietnam
Sea freight from china to vietnam

LCL (LCL)

By LCL shipping, your cargo shares container space with other companies' products imported from China to Vietnam. LCL is often the most cost-effective method for businesses shipping smaller shipments.

Full Container Load (FCL)

With FCL shipping, you have exclusive use of the shipping container. Your shipment will be completely sealed in the container from origin to destination. FCL shipping is not only faster than LCL, but also cheaper.

Air freight from China to Vietnam

Air freight from china to vietnam
Air freight from china to vietnam

Air freight is by far the fastest way to export from China to Vietnam. Some shipments can be completed within four days. However, this is the most expensive shipping method.

Trucking from China to Vietnam

Now, let me introduce you to trucking from China to Vietnam.
You can use it if you want to ship goods from Yunnan Province to Vietnam.
Trucking from China to Vietnam is very flexible.
This is one of the main advantages.
For example; you can ship to very small towns without airports, oceans or rail lines.
With this, TJ chinafreight we can provide door to door shipping from China to Vietnam.
That is, you can visit places within Vietnam.
guess what?
This will work in your favor - cost-effective, convenient and reliable trucking from China to Vietnam.
The process here is very simple.

How long does it take to ship goods from China to Vietnam?

The time it takes to ship goods from China to Vietnam, as well as the price, are often important factors in determining the shipping method.

Of course, air freight is the fastest option, with transit times between China and Vietnam ranging from four to eight days. On the other hand, shipping time by sea can vary greatly depending on the distance between the origin and destination ports. You can expect the shipping duration to be between 7 and 31 days.

The following are examples of transit times for routes operated by Shipa Freight between China and Vietnam:

Shanghai to Ho Chi Minh City - 8 days FCL, 14 days LCL
Guangzhou to Ho Chi Minh City - 14 days FCL
Shenzhen to Ho Chi Minh City - 24 days FCL
Huangpu to Ho Chi Minh City - 24 days for FCL, 16 days for LCL
Lianyungang to Haiphong - 31 days FCL
Jiangmen to Haiphong - 7 days FCL, 5 days LCL
Shanghai to Haiphong – 13 days FCL, 7 days LCL
Dalian to Ho Chi Minh City - 31 days FCL
Qingdao to Haiphong - 7 days FCL
Tianjin to Haiphong - 13 days FCL
Zhongshan to Ho Chi Minh City - 27 days FCL

While the flight from China to Vietnam only takes a few hours, the entire shipping process takes days. The transit time for air cargo includes customs and security inspections, as well as loading and unloading of the cargo.

Below is an example of transit times for a typical air freight route between China and Vietnam:

Shanghai to Ho Chi Minh - 4 days
Shenzhen Ho Chi Minh – 8 days
Shanghai to Hanoi - 5 days
Beijing to Hanoi - 8 days
Guangzhou to Hanoi or Ho Chi Minh - 7 days

China and Vietnam Customs Clearance

Clearing customs can seem like a daunting process, especially if this is your first time exporting from China to Vietnam. A freight forwarder can take the load off you by providing the necessary guidance and expertise to ensure your shipments comply with the rules.

What is the customs clearance process for goods from China to Vietnam?

you have to provide information about certain things,

  • Origin and destination of the goods
  • Importers and Exporters Tax Information
  • Package quantity, volume, weight and product description
  • Tax payable

You need to provide the following documents,

  • Commercial invoice
  • Bill of lading
  • Packing list
  • Any required proof (for restricted items and special approvals)
/ By tjchinafreight ivy / Shipping

Maersk announces formation of an air cargo company

On April 8, Maersk issued an announcement on its official website, announcing the establishment of an air cargo company, Maersk Air Cargo, as its main air cargo business, to meet the logistics needs of customers through integrated logistics.

The company, which owns the world's largest container shipping company, said its new Maersk Air Cargo business will be operational in the second half of the year, while Maersk has selected Billund Airport, Denmark's second largest airport, as the air cargo hub for Maersk Air Cargo, which operates daily Both flights create multiple jobs in the region. It will use Denmark's Billund Airport as its main hub and offer daily flights.

Jan Hessellund, CEO of Billund Airport, said: "We are very proud to have been selected as Maersk's European air cargo hub and we look forward to taking our collaboration to new heights."

The new air carrier is the result of existing in-house aircraft operator Star Air transferring its operations to Maersk Air Cargo.

Last year, the company announced it had purchased two new B777 freighters, due for delivery by Boeing in 2024, and leased three B767-300 freighters, which will enter service next year through ATSG's leasing arm, Cargo Aircraft Management. Send your goods from China to anywhere in the world

Maersk said that Maersk Air Cargo's air freight capacity, which is Maersk's controllable capacity, is designed to make the supply chain more flexible and intuitive. When combined with ocean freight, inland, warehousing and customs services, it provides another key link in Maersk's strategy to become a global integrated logistics provider.

"Maersk Air Cargo is an important step in Maersk Air Cargo's strategy as it will allow us to offer our customers a truly unique set of solutions combining air cargo with other modes of transport. We see, both now and in the future, the The demand for air cargo is growing, as is the need for end-to-end logistics, so it is important for us to strengthen our controllable capacity and further advance our air cargo strategy,” said Torben Bengtsson, Global Head of Maersk Air and LCL . Get Air Freight Services

/ By tjchinafreight ivy / Shipping

Asian owners have larger fleets than Europe

Clarksons Research Services, in its latest weekly report, highlights how Asian shipowners are finally reinventing their European counterparts to become the dominant force in global shipping.

European owners have historically had the largest share of the global fleet, with 44% of gt at the turn of the century, and Asian owners 32%.
Led by rapid growth in China, Asian shipowners overtook Europe last year, and looking at global orders, the gap will widen in the coming years. According to a recent report by Clarksons Research, by the end of 2021, Asian shipowners currently have a market share of 43% (48,472 ships, 637 million gt) of world fleet capacity in terms of gross tonnage, surpassing that of European shipowners. 42% market share of fleet capacity (30,610 vessels, 630 million gt).

Over the past decade, Chinese shipowners have increased their fleet gross tonnage from 111 million to 226 million and are now the second largest shipowner of all countries with a 15% global share. shipping goods in China

Asian shipowners now account for 43% of global tonnage, with 48,472 vessels totalling 637 million tons, according to Clarkson. This exceeds the 42% share of European shipowners, comprising 30,610 vessels with a gross tonnage of 630 million.

“The tonnage shift from Europe to Asia looks set to continue for some time, with almost half of the global order book (79m GT, 49%) going to Asia Pacific owners compared to 33% (53m GT) for European owners,” Clarksons pointed out.

Asia dominates many other aspects of maritime, including ports, shipbuilding and crew supply.

In addition, Asia's growing market share in global trade is driving a large number of newbuilding investments in many Asian countries, which will eventually lead to a significant increase in fleet capacity share.

It is worth noting that despite the fact that countries in the region have experienced some of the strictest epidemic prevention and control restrictions in the past two years, with borders effectively closed for two years, the growth of the Asian fleet has remained very strong during the pandemic. s level.

Take the shipping industry as an example. After the outbreak, the container shipping market rebounded rapidly from the second half of 2020 after a brief downturn. Due to the supply chain congestion caused by the epidemic, there is an urgent need for a large number of container ships in the market. During this period, Asian container shipping companies ordered 236 ships, with a total capacity of 1.81 million TEU. And the pace of newbuilding orders is still showing no signs of slowing down.

With the exception of Greece, fleet growth in other European countries has been relatively sluggish, or even reversed. Taking Germany as an example, the combined capacity of German shipowners fell by 34% to 62 million gt during the same period.

Clarkson also said that this trend will continue to develop. Because the current market share of newbuildings owned by Asian shipowners also accounts for nearly half - 49% (79 million gt), it is worth mentioning that the total capacity of Chinese shipowners' newbuilding orders has reached 29 million gt, 18% of the world share.

However, the newbuilding order capacity of European shipowners is currently only 53 million gt, and the share is only 33%.

/ By tjchinafreight ivy / Shipping

Maersk and GCT settle NY dock berthing deal

Maersk and terminal operator GCT New York have settled a two-year lawsuit involving the transfer of three Maersk vessel services from GCT to APM Terminals in Elizabeth, NJ.

Learn more about sea freight.

On Monday, lawyers for both sides filed a letter to the judge hearing the lawsuit, saying they plan to file a joint motion to dismiss the case. About a month later, lawyers for GCT New York filed a motion for summary judgment against Maersk, alleging the ocean carrier had "willfully breached" its terminal service contract and issued a settlement notice.

Terms of the settlement were not disclosed.

GCT New York, operated by Global Container Terminals, filed a lawsuit against Maersk in New York federal court in April 2020 over Maersk's decision to transfer the service of three vessels that have docked at Staten Island since 2015 to Maersk-owned APM Terminals . near Elizabeth, New Jersey.

GCT New York filed a lawsuit against Maersk on April 20, 2020, over the termination agreement, arguing that the agreement was announced 20 months before the agreement termination date.
In a statement to our publication, the port operator explained that it sought special remedies from the court in the form of an expedited preliminary injunction to avoid termination of disruption to labor, operations and other consequences.
GCT has been fighting Maersk's decision, fearing it would plunge it into a loss and cost the port operator more than 100 jobs.
The deal between the two was first established in 2015 and has since been extended several times.
Maersk announced the move in early April, explaining that the shift was aimed at achieving greater operational efficiency following a recent $200 million upgrade and expansion at APM Terminals Elizabeth.
A company spokesperson confirmed to Offshore Energy that the court rejected the restraining order on Friday, April 24, 2020, allowing Maersk to terminate the agreement from May 1.

Maersk offers termination fee
Maersk argued that it could exit the GCT deal through a clause in the contract that allowed for a termination fee based on expected volume. Maersk said in an April 2020 letter to GCT that it would pay $5.4 million to resolve the dispute.

Despite the loss of those services, GCT New York, like other terminals, has seen its fate amid a surge in U.S. imports over the past 18 months. According to the Port Authority of New York and New Jersey, rents and container throughput at GCT New York are up 53% in 2021.

The available berth space at GCT New York is one reason the port was able to handle more ships and cargo last year. Independent airline Wan Hai Lines launched its Asia-US East Coast route earlier this year and added a second Asia route called GCT New York. MSC has also switched the Asia-West Coast route to GCT New York.

/ By tjchinafreight ivy / Shipping

Seaspan plans to expand investment in container ships.

 

In the past two years, the container shipping market has been hot. Although Seaspan, as the world's largest independent container ship owner, could have sat down and reveled in the high income, sufficient customers and long-term leases, due to the rapid development of the shipping industry, the The company still plans to expand its investment in container ships.

The Vancouver-based, Hong Kong-registered, Atlas Corporation-owned company has been growing at a record pace over the past year and a half. Its latest financial statements for 2021 confirmed that the company's cash flow was very solid, with a profit of $400 million in 2021, double the previous year. The leasing business added 70 newbuildings, or about 0.9 million TEU, and new contracts generated total cash flow of up to $12.9 billion.

Like the big liner companies, Seaspan is building a very strong capital pool. There is no doubt that investing in new projects is very easy for Seaspan. If a bank needs it to guarantee a loan, Seaspan can easily find a recent lease with a major liner company, which can last up to 18 years.

That said, Seaspan will still have an exceptionally strong funding position until 2040, even if the hot container market cools one day.

Seaspan and its shareholders want uninterrupted returns through continuous investment like a shipping company. Many large liner companies use their profits to invest in logistics assets. For example, Maersk bought LF, MSC bought Bolloré's African business, and CMA CGM bought Ceva.

But considering that the customers of these profiteers are now helpless to pay sky-high freight costs and endure long delays, in this case, shipping companies rely on their special tax incentives and use their high profits to acquire Another industry has exacerbated the negative sentiment in some parts of the supply chain market to a certain extent. Seaspan needs to study how to play a long-term "ship owner and operator" in the container shipping industry. business to best serve customers.

The issue has been discussed within the company for some time, but according to COO Torsten Pedersen, there is no final conclusion yet. But in general, the company aims to further strengthen its position in global value chains, including beyond 2025.

Ensuring a role in decarbonisation may be an option, but it may also be other activities, and opportunities abound in the chaotic container market.

“The industry is currently undergoing major changes, and the competitive environment is very different from a few years ago. Some links may be squeezed in the new structure, and there will be many strategic moves and counter-attacks in the industry. Huge market changes can provide many creative opportunities, we Think it's an exciting challenge."

"It's a good thing that Seaspan has a strong financial position" amid the boom in the container market, Pedersen said. Seaspan is currently achieving its stated goals. The company has struck deals with operators to build around 70 new ships over the next two or three years.

Concluding comments on the shipping industry, he said: "We have strong partners and long-term contracts, and our partner yards have a long history of shipbuilding. This is an industry that will be heavily funded in the next few years and the landscape is changing."

/ By tjchinafreight ivy / Shipping

Frontline and Belgian tanker owner Euronav announce merger

Frontline, the oil tanker subsidiary of Norwegian shipping king John Fredriksen, and Euronav, the Belgian tanker owner, announced the merger. The new owner with 146 tankers surpassed China's China Merchants Shipping to become the "Big Mac" in the global very large tanker (VLCC) market. .

If the merger materialises, the combined group will continue to operate under the Frontline name and will continue to operate in Belgium, Norway, the UK, Singapore, Greece and the US. The combined group will be headed by Mr. Hugo De Stoop as Chief Executive Officer, and the Board of Directors of the combined group is expected to consist of seven members, including three current members of the independent Euronav Supervisory Board, two nominated by Hemen Holding Limited (“Hemen”) and additional Two new independent directors. Frontline's largest shareholder, Hemen, and related companies with stakes in Euronav have pledged to back the potential deal.

The companies said the combination provides economies of scale that will facilitate improved fleet utilization and ease the transition to digitalisation of logistics and the adoption of low-carbon fuels for tankers.

"The merger will create the world's leading independent tanker operator," KBC Securities wrote in a note to clients, while warning that there was no guarantee that a final merger agreement would be reached.

The merger will create a world-leading independent tanker operator with a market capitalization of more than $4.2 billion, with a fleet of 69 VLCCs (including 9 newbuildings under construction) and 57 Suezmaxes, as well as 20 LR2/Afra type oil tanker. In the VLCC market, the combined fleet of the two companies accounts for about 8% of the market, which is enough to exceed the 54 ships (including 3 new ships under construction) of China Merchants Steamship, the world's largest VLCC shipowner.

The combined, expanded fleet will enable the new company to better serve customers globally. Furthermore, given rapid technological change, including digitization and the application of new low-carbon fuels, new companies will be able to mobilize more resources to address these challenges and energy transition opportunities.

Commenting on the merger, John Fredriksen said: "The combination of Frontline and Euronav will create a market leader in the tanker market, allowing the combined group to continue to deliver shareholder value in addition to substantial synergies. The new Frontline will be able to provide our of customers providing value-added services, increasing fleet utilization and revenue, which will benefit all stakeholders.”

It is understood that last year, John Fredriksen purchased a 5.5% stake in Euronav through a subsidiary company CK Limited, and bought 7.7 million shares through another subsidiary company FamatownFinance. After two rounds of operations, John Fredriksen held 19.8 million shares of Euronav, with a shareholding ratio of 9.8%, which immediately triggered market speculation about the merger.

The merger is still subject to transaction structure, confirmatory due diligence, the terms and conditions of the potential merger agreement, applicable board, shareholder, customer, lender and/or regulatory approvals, employee consultations and other customary closing conditions.

Frontline and Euronav are working to reach and finalize an appropriate transaction structure for a potential business combination. It is not yet ripe for the market to complete the merger, and there is no guarantee that the parties will reach a final agreement, and the completion of any transaction is subject to the satisfaction of many of the above conditions. Frontline and Euronav will keep all stakeholders informed of any future developments in accordance with applicable regulations.

/ By tjchinafreight ivy / Shipping

McKinsey heralds bad news for shippers

Shippers must prepare for events in which the tight container market may not normalize until 2024, according to a new analysis by McKinsey & Company. But the consultancy told ShippingWatch that shipping rates could end up being 50% higher than pre-pandemic figures.

The container market has been strained since mid-2020 due to the huge demand for goods in the United States, port closures due to the pandemic, container shortages and extreme congestion at the world's largest and most important container ports.

The result of the tight market is the soaring of container freight rates. The revenue and profit of container shipping companies in the past two years have experienced historic growth. Last year, the total revenue of the top ten shipping companies exceeded 100 billion US dollars. The punctuality rate has fallen to its lowest level in more than a decade.

Some shipper companies, which are customers of container shipping companies, have not stopped complaining about these situations for a long time, and they even believe that container shipping companies should be more strictly regulated.

But this recent McKinsey report throws cold water on shippers.

McKinsey, one of the world's largest management consulting firms, expressed its views on the current container shipping market in a report entitled "Navigating the current disruption in containerized logistics". A large number of new ships have been ordered to expand capacity, but the normalization of the container shipping industry may still be delayed until the first quarter. If the situation is worse, normalization of the market may take until after 2024.

McKinsey also noted that container freight rates will remain high for most of 2022, while disruptions to the container logistics supply chain will continue.

Steve Saxon, a McKinsey partner who is now a container market analyst based in McKinsey's Shenzhen office, said that if you asked us a few months ago for our views on the future of the container industry, we might also lean towards a positive (recovery) view. But right now, McKinsey is leaning more toward a pessimistic outlook -- bad news from a shipper's perspective.

McKinsey proposes four possibilities for the future development of the container shipping market.

In the most optimistic case, the container shipping market may return to normal in the third quarter of 2022. Normal freight volumes, normal capacity offers, and normal freight rates.

But McKinsey also said that the most optimistic scenario may not be possible.

/ By tjchinafreight ivy / Shipping

The container shipping market is in short supply, and the price of second-hand ships has skyrocketed

Since the outbreak of the epidemic, the supply and demand of the container shipping market has been unbalanced, and the freight rate has skyrocketed. Shipping companies that are "not worried about money" have bought and leased them. The amount of scrap is almost zero.

According to Alphaliner data, container lines have gone on a spree to acquire more than 500 container ships in the second-hand ship market in the past 18 months. Among them, Mediterranean Shipping was the largest buyer, purchasing a total of 169 second-hand ships with a total capacity of 636,900 TEU; followed by CMA CGM, which purchased 62 ships with a total capacity of 207,000 TEU. Maersk Line only ranked third, purchasing 27 ships of 141,600 TEU. The fourth is Wan Hai Shipping, which purchased 23 ships of 139,700 TEU.

ALphaliner pointed out that at the beginning of the market recovery, the price of second-hand ships was still at a low level, which made it a better choice for container shipping companies to buy and lease. At the same time, many small non-operating ship owners (NOO) are struggling on the brink of bankruptcy due to years of low rental income, and it is difficult to resist the high prices offered by container shipping companies.

Currently in the second-hand ship market, container ship prices have soared to record highs. The hot sale situation has also made the scrapping of container ships almost zero, and the capacity in the charter market has plummeted by 1.6 million TEU.

At the same time, orders for new container ships also hit a record high last year. Clarkson's data shows that in 2021, the order volume of container ships will reach 569 ships of 4.3 million TEU, and the contract value is as high as 42.8 billion US dollars. This order level is even 29% higher than the previous record level of 3.3 million TEU in 2007. 3.5 times the average order volume in the 10 years ending in 2020.

Since 2022, there have been 124 new orders in the container ship market, with a total capacity of about 857,600 TEU. It is estimated that the order volume of container ships will remain at a high level after 2022.