Red Sea Crisis Shakes Up Containership Deployment Trends

The ongoing Red Sea crisis has significantly influenced global containership deployment, revealing shifts in trade dynamics as analyzed in a recent report by shipbreaking firm Clarksons. Following last year’s accelerated supply growth and vessel ‘cascading,’ deployment patterns are adjusting to meet new challenges.

Smaller containerships, previously cascaded from Asia-Europe routes, have now returned to these trade lanes. The deployment of vessels under 17,000 TEU on the Asia-Europe route rose to 42% last month, marking an 11% year-on-year increase. This reflects a reversal of previous trends as capacity requirements realign.

Clarksons analyst Thomas Grant observed that on the transpacific route, the share of 12,000–17,000 TEU vessels continues to grow. However, many of these ships are now also being directed to Far East-Europe lanes, maintaining their steady share of 46% in 2024.

This shift comes against the backdrop of a freight rate regression in 2023, compounded by a surge in new vessel deliveries. Last year saw the introduction of 2.3 million TEU of capacity, an 8% increase, with the 12,000–17,000 TEU segment expanding by 18% as 850,000 TEU of these ships entered service. By December 2023, these vessels accounted for 45% of transpacific capacity, up from 39% in January.

The Red Sea crisis has disrupted this equilibrium. Fearing Houthi attacks near the Suez Canal, many Asia-Europe ships have been rerouted via the Cape of Good Hope, necessitating longer sailing times and additional vessels to meet demand. The ripple effects extend beyond Asia-Europe lanes. Deployment of 12,000–17,000 TEU ships on Far East–South America routes surged from 19% in January 2023 to 39% by late 2024, stabilizing at this level last month.
Grant summarized the Red Sea disruption has undoubtedly reshaped deployment trends in 2024. While the impacts are not as dramatic as during the COVID-19 era, notable changes in deployment patterns, particularly for larger vessels, are evident. The evolving situation underscores the interconnected nature of global shipping and the challenges operators face in responding to geopolitical crises and shifting trade dynamics.