Total orders of dry bulk, tanker, and container ships in the first five months of the year have jumped 119.7% compared with the same period in 2020, BIMCO said, primarily driven by record-high container ship contracting, as investors in this segment find themselves flush with cash.

In a statement, the largest international shipping association, controlling around 65% of the world’s tonnage, said so far 43.6m DWT of orders have been placed at shipyards, towering above the 19.8m DWT at the start of 2020, when order levels were lower due to uncertainty at the start of the pandemic.

In all of 2020, 49m DWT was ordered, a level which is only 5.5m DWT above the level reached in just the first five months of 2021, it added.

Although not matching the staggering growth in container ship contracting, BIMCO noted that demand for new crude oil tankers has been strong, up 47.4% from the first five months in 2020, despite the freight market is much more profitable than currently.

BIMCO said oil product tankers on the other hand have seen a fall in contracting, whereas dry bulk contracting, despite the strong freight and S&P markets, is only slightly above last year’s level.

“The vast amount of money pouring into container shipping is finding its way into the shipyards, with the current tightness in the supply of ships incentivizing some owners to expand their fleets. Although also making good money in the current market, dry bulk owners have been more reluctant to order new tonnage, with the second-hand market proving more popular,” says BIMCO’s Chief Shipping Analyst, Peter Sand.

“The tanker market is split in two. We are seeing a rise in contracting for crude oil tankers, as owners who filled their coffers during the height of the market last year are betting on a better market when the ships are delivered, whereas oil product tankers are proving less popular,” he added.

Money from container freight, charter markets pouring into shipyards

It has been a truly record-breaking start to the year for containership contracting, with 2.2m TEU being ordered. This is more than 12 times higher than the 184,254 TEU ordered in the first five months of 2020 and more than 60% higher than the previous record dating back to the start of 2005.