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Home Steel News Global shipping outlook: Demand for bulker & tanker expected to grow, while container to decline through 2027
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Global shipping outlook: Demand for bulker & tanker expected to grow, while container to decline through 2027

14 Oct 2024 15:41 reported by Stanley Wang

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The global shipping outlook through 2027 presents a mixed scenario for different vessel types. While orders for bulkers and tankers are expected to rise, demand for containers and LNG/LPG vessels is forecasted to decline. Despite the growth in bulker and tanker orders, the overall orderbook could shrink due to a surge in deliveries for containers and gas vessels.

The global economic outlook remains unpredictable, influenced by ongoing geopolitical conflicts, sanctions, and trade wars that could impact demand. China's economic recovery, vital for global trade, was also unstable, while high interest rates in Western economies heightened the risk of a recession, potentially delaying future growth.

Container demand has seen strong growth this year, particularly in the transpacific eastbound trade, which rose 22.4%. Freight rates have surged due to the Red Sea conflict, prolonged sailing distances, and port congestion. However, vessel supply is set to outpace demand from 2024, potentially affecting freight rates. Container orders reached record highs, but a surplus is expected as nearly 8 million TEUs enter the market in the coming years.

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