In the first quarter of 2025, the number of new orders for bulk carriers fell to the lowest level in the same period, which the industry believes is the result of a combination of market conditions and regulatory factors.
The bulk carrier market placed orders for only 18 new vessels totaling 1.6 million dwt from January to March 2025, Greek shipbroker Intermodal noted in its latest weekly report. In terms of deadweight tons, the first quarter of 2025 hit a record low for the same period, the penultimate quarterly total on record, with the lowest level being the third quarter of 2016.
The 18 newbuildings ordered in the first quarter of this year were: six Capesize, five Kamsarmax, three Handysize, two Newcastlemax and two Ultramax bulk carriers.
Compared to previous years, the volume of new ship orders declined significantly.In the first quarter of 2024, shipowners ordered 173 bulk carriers totaling 13.9 million dwt. Newbuilding orders for the same period in 2023, 2022 and 2021 were 9.8 million dwt, 10.7 million dwt and 13.4 million dwt, respectively.
Notably, leading shipbroker BRS noted in its annual review that the dry bulk orderbook rose from 51.8 million dwt in 2023 to 59.1 million dwt in 2024, the best year in the past decade. The analysts forecast that about 40 million dwt of newbuilding contracts will be signed in 2025.
Intermodal believes that weak freight rates are the reason for the sluggish ordering of new bulk carriers, which was particularly evident in most of the first quarter of this year, reducing the motivation for fleet renewal. Many shipowners prioritize liquidity and operational efficiency rather than long-term investment.
In addition, although the cost of new ships has slightly adjusted, the overall cost remains high. Intermodal pointed out that the uncertainty of future environmental regulations and propulsion technology (especially considering the decarbonization goals of the International Maritime Organization (IMO)) has increased the pressure on shipowners to invest in shipbuilding.
Shipyard capacity is another major factor influencing bulk carrier owners’ investment decisions, with major shipyards now operating at near full capacity and deliveries pushed to 2027 and beyond. Geopolitical developments, including rising trade tensions and proposed port fees in the United States, have also added additional risks to newbuilding strategies, prompting the industry to adopt a more cautious approach.