Ship owners spending big bucks on new-builds

Chamber of Shipping > Blog > News > International > Ship owners spending big bucks on new-builds

Major shipping companies made record profits during the pandemic and are using the money to order a massive number of new vessels. However, this has led to unprecedented number of global orders of nearly $90 billion, making the industry vulnerable in the current downturn as freight rates drop and overcapacity fears resurface. Despite efforts to upgrade vessels for environmental reasons, concerns are growing about over investment. Some European owned companies are leading the ship orders. The industry is becoming more cautious, but there are worries about future challenges due to potential excess capacity and declining demand.

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