The shipping industry is currently experiencing a significant slowdown in fleet renewal activities, particularly in the bulk carrier and tanker sectors. Mr. Yiannis Parganas, Head of Research at Intermodal, highlighted that the first quarter of 2025 saw only 16 newbuilding contracts for bulk carriers. This figure includes various vessel types such as Newcastlemax, Capesize, and Kamsarmax, resulting in a total deadweight tonnage (dwt) of only 1.62 million.
This marks the lowest level of newbuilding ever recorded in a first quarter, starkly contrasting with the 173 orders placed in Q1 2024, which totaled 13.9 million dwt. The trend of declining orders is evident over the past few years, with previous quarters also showing robust activity levels. In the tanker sector, 43 vessels were ordered in the same timeframe, with notable contributions from Tsakos Energy Navigation, which commissioned nine shuttle tankers.
The breakdown of tanker orders for Q1 2025 includes a variety of vessel types, totaling 2.84 million dwt. While this number does not represent a historical low, it indicates a downward trend compared to much stronger order volumes seen in prior quarters, particularly Q1 2024, which involved a significant influx of orders including VLCCs and Suezmax tankers. Several factors are contributing to this reduced activity in newbuilding projects.
Weak freight rates, especially in the dry bulk market, are causing shipowners to shift their focus toward maintaining liquidity and operational efficiency rather than investing in fleet renewal. Additionally, elevated newbuilding prices, uncertainty surrounding upcoming environmental regulations, and technology advancements are making shipowners hesitant. Furthermore, with shipyards already operating near full capacity, delivery slots are being pushed out to 2027 and beyond, compounding the challenges facing newbuilding commitments and fostering a cautious approach throughout the shipping industry.