BIMCO, the largest international shipping association, controlling around 65% of the world’s tonnage, said in March, orders for 45 Ultra-large containerships (ULCS, 15,000+ TEU) were placed, breaking a record on its own.

"The Suez Canal incident was not the only spectacular event that took place within the container shipping sector in March. Operation owners and pure tonnage providers were busy placing new orders for Ultra Large containerships too," said Peter Sand, BIMCO’s chief shipping analyst. 

In a statement, the world’s largest shipping association noted that adding to the ULCs in order were 27 orders for ‘smaller’ sized ships were placed during the same month, bringing the total order capacity to 866,060 TEU — marking a real turnaround for the container shipping sector.

"The turnaround for the container shipping sector offers a glimpse of the level of confidence currently seen in the business on behalf of owners as well as investors," BIMCO said, noting that in all of 2020, a total of 995,000 TEU of container shipping capacity was ordered.

Capacity ordered in the first quarter of 2021 has already reached 1,398,000 TEU, a six-year-high compared to previous full years.

“The industry is keen on benefitting from the economies of scale that ultra-large containerships have to offer if you carry payloads close to its cargo-carrying capacity,” Sand said.

The size of the ships, being 400 metres long with a beam of 60 metres weighting as much as 220,000 tonnes.

It is ‘upside down’ for orders placed in 2021

BIMCO said in October and December last year, orders placed were almost exclusively for ships with a maximum capacity of 23,000-24,000 TEU, with only four out 23 orders for ULCS outside that range.

But so far in 2021, only 4 out of 81 orders for ships with a capacity of at least 11,800 TEU were larger than 15,500 TEUs.

“The mammoth size of some containerships was questioned many times during the recent six days of Suez Canal blockage, as some saw it as an omen of ships becoming too large, compromising supply chain reliability, navigational excellence and safety,” Sand added.

“But as I said at the time; you should not expect much change on that account, as Ultra-Large containerships are the preferred choice of ‘weapon’ in the arms race of the container shipping industry seeking to improve long-term profitability.”