Market Insight | Week 42

Following our previous report on the feeder containership market earlier this year, the momentum in this segment has only strengthened. Over the past several weeks, feeder newbuilding activity has gathered pace, reflecting growing confidence among owners and operators in the sector’s medium-term fundamentals. In just the first two weeks of this month, 16 new feeder orders have been placed, continuing the solid momentum from September, when contracting reached 26 units — the highest monthly level since June 2024. So far this year, 157 new feeder containerships have been ordered globally, pushing the total feeder orderbook to 293 units. As a result, the orderbook-to-fleet ratio has risen from a record low of 4.6 % in March to 7.54 % today. While this marks a clear upward trend, it still lags far behind other size segments, where the 3–7.9 k TEU class stands at 10.81 % and the 8 k+ TEU class at a striking 46.69 %.
This contracting momentum is taking shape against a shifting trade landscape and tightening fleet fundamentals. Over the past few months, the trade environment has become more complex as tariff tensions between the U.S. and China intensify. Measures targeting Chinese-flagged vessels at U.S. ports, combined with reciprocal tariffs on U.S.-linked vessels in Chinese ports, are already prompting supply chain adjustments. If these tariffs persist or deepen, cargo flows may increasingly shift toward alternative gateways and transshipment hubs, particularly across Southeast Asia, India, and the Mediterranean. In such a scenario, the importance of regional connectivity will grow, and feeder services will be at the center of this shift. Feeder vessels are ideally positioned to serve these flexible, short-sea routes, linking secondary ports with mainline hubs, a role large vessels cannot replicate efficiently.
The underlying fleet structure reinforces this bullish outlook. This is especially significant given the ageing profile of the current feeder fleet: the average age has reached 15.2 years, the highest on record, while vessels over 20 years old now account for around 26 % of the existing fleet in TEU terms. With regulatory pressure mounting — particularly related to carbon intensity measures and emissions control — many of these older ships will be forced out of the market over the next 18–24 months. This natural attrition will occur against a backdrop of accelerating newbuilding activity, setting the stage for a dynamic and fast-evolving supply landscape that is unlike any other containership segment.
Another important dynamic is where this new capacity is being built. In 2025 alone, a total of 156 feeder vessels have been ordered, and 77 of them, roughly 49 % are being built in China, spread across 10 different Chinese shipyards. Significantly, the majority of these contracts have gone to second-tier private builders such as Fujian Mawei SB, Fujian Southeast SB, Zhoushan Newrising, Taizhou Haibin, and several Jiangsu-based (tier II and tier III yards). With top-tier shipyards still dominated by orders for ultra-large boxships and LNG carriers, owners seeking delivery slots for smaller units are increasingly turning to these private yards. This clearly supports the narrative that a large share of the feeder newbuilding program is being absorbed by smaller, flexible Chinese yards, as Tier 1 yards remain focused on larger boxships and LNG carriers.
Unlike the large vessel segments, where ordering has outpaced demand, the feeder sector’s upswing in newbuilding activity is unfolding against a backdrop of structural fleet ageing and accelerated retirements, meaning that overall capacity remains constrained even as contracting volumes rise. At the same time, tariff-induced adjustments and the broader reconfiguration of global supply chains are creating tailwinds for intra-regional trade growth. Southeast Asia, South Asia, the Mediterranean, and parts of Africa are likely to see increased transshipment volumes, driven by rerouted cargoes and a gradual “de-risking” of supply chains away from traditional long-haul corridors.
In this context, the current surge in feeder newbuilding activity should not be seen as speculative but rather as strategic positioning. Owners are locking in scarce yard capacity and preparing to meet future regional trade demand at a time when competing segments are still digesting a wave of large ship deliveries. The feeder market has often operated outside the gravitational pull of the ultra-large vessel narrative and that divergence may now be its greatest strength. With fundamentals tightening, ordering activity surging, and regional trade set to deepen, the segment appears poised for a period of sustained growth and healthy earnings resilience.