Bulker newbuilding contracts at five-year low
Between January and November 2025, bulker newbuilding contracts fell by 54% year-on-year to 25 m dwt, the lowest level since 2020. This drop has resulted in a 4% reduction in the dry bulk orderbook, now representing 11% of the total dry bulk fleet. Filipe Gouveia, shipping analysis manager at Bimco, attributes this decline to a bleak market outlook. The number of ships ordered has also decreased by 61% year-on-year, with only 281 contracts, the fewest since 2016. While all segments have seen declines, the capesize segment shows comparatively stronger demand.
Contracting in supramax and panamax segments has also dropped significantly, leading to weakened freight rates. Chinese shipyards dominate the market, securing 81% of new orders. Although newbuilding prices have decreased by 3%, long delivery lead times may limit immediate benefits. Notably, the share of contracted capacity for alternative fuels has decreased, while the ability for future retrofitting has increased, reflecting ongoing uncertainty in the fuel sector.