The global container market in Q1 2026 showed changing conditions, starting with stable activity in January, supported by limited capacity and high fleet utilisation. In February, freight markets moved lower due to reduced industrial activity during the Chinese New Year. By March, geopolitical tensions in the Middle East, maritime disruptions, and rising energy costs resulted in a more cautious outlook.
Freight rates remained stable in January due to constrained vessel availability and low idling. In February, weaker demand led to lower rates as export volumes declined. In March, disruptions to shipping routes and reduced capacity availability created operational pressure, while higher energy costs affected overall trade conditions.
Market participants focused on managing risk and maintaining flexibility, with variations across trade lanes. Lower demand and weaker growth expectations in container trade contributed to uncertainty for the months ahead.
Investment in new vessels continued as operators focused on fleet renewal and compliance with environmental regulations. Orders included 16 new ships in January, while Evergreen placed orders for 23 vessels. In February, Maersk ordered eight dual-fuel containerships. In March, orders continued, including vessels with LNG and dual-fuel capabilities.
Rerouting away from the Strait of Hormuz is expected to absorb capacity due to longer voyages via the Cape of Good Hope, affecting transit times and vessel availability.
Second-hand vessel activity was stronger in January, with purchases of Panamax and Neo-Panamax ships. Activity slowed in February and declined further in March, with fewer transactions reported.
Demolition activity remains limited, with only eight to ten containerships scrapped in 2025 compared with 81 to 82 units in 2023. Around 500 vessels, or about 1.8 million TEU, are overdue for recycling. About a quarter of the global fleet is older than 20 years, yet many vessels remain in service.
Scrap prices reached around US$510 per LDT before easing to about US$465 per LDT in Bangladesh during March. Some older vessels have started to exit the fleet, with further recycling expected as newbuilding deliveries increase and environmental requirements tighten.
The combination of new vessel deliveries, limited demolition, and disrupted trade routes may affect capacity balance and freight rates in the medium term.
Source: Container News
