In July, the Container Shipping market experienced major developments — from record fleet growth to shifting trade routes and accelerating adoption of alternative propulsion. CMA CGM reached a historic capacity milestone, Red Sea traffic patterns evolved, and China solidified its shipbuilding dominance.
Let's explore the latest critical developments shaping the global Container Shipping industry.
CMA CGM Surpasses 4 Million TEU Operated Capacity
In July, French carrier CMA CGM surpassed 4 million TEU of operated capacity, confirming its position as the world’s third-largest container line, behind MSC Mediterranean Shipping Company (6.7 MTEU) and A.P. Moller – Maersk (4.6 MTEU).
Founded in 1978 and owned by the Saade family, CMA CGM had quadrupled its size in 16 years. Historical capacity milestones included:
- 1 MTEU in June 2009
- 2 MTEU in 2016
- 3 MTEU in 2021
- 4 MTEU in 2025
Growth had been driven by organic expansion and major acquisitions — including CGM (1996), ANL (1998), Delmas (2005), and APL (2016) — along with the purchase of regional carriers such as MacAndrews, Cheng Lie Navigation, U.S. Lines, COMANAV, OPDR, Mercosul Line, Sofrana Unilines, and Containerships Oy.
By the end of July, CMA CGM operated 683 container vessels, ranging from 125‑TEU feeders to LNG-powered Megamaxes of nearly 24,000 TEU. Its orderbook stood at 95 ships / 1.5 MTEU, second only to MSC’s 135 ships / 2.2 MTEU. More than 40 of these newbuilds were LNG-powered, including twelve 24,000‑TEU Megamaxes and thirty 19,000‑TEU units.
Red Sea Disruptions Reshape Suez Canal Traffic
The Red Sea remains a volatile chokepoint for global shipping. Two bulk carrier sinkings — the 2012‑built Handy ETERNITY C and the 2016‑built Ultramax MAGIC SEAS — intensified disruption in the Red Sea.
While some larger Container Ships cautiously resumed Suez Canal transits, other patterns shifted noticeably:
- Sub‑Panamax (<4,000 TEU) traffic dropped below 100 vessels per month in May and June, marking the first year‑over‑year decline for this size category since April 2021.
- 4,000–7,500 TEU crossings exceeded 40 per month in May and June for the first time since March 2024.
- 7,500–18,000 TEU traffic showed little change.
- 18,000+ TEU Megamaxes continued to avoid the region for the 15th consecutive month.
Idle Fleet Remains Low Despite Tariff Concerns
As of late June, only 0.5% of the global container fleet was commercially idle — just 65 ships totaling 161,295 TEU. Frontloading of U.S. imports amid tariff uncertainty was keeping utilization high, with smaller vessels accounting for most idle capacity.
At the end of July:
- 65 ships (161,295 TEU) were commercially idle, representing just 0.5% of global capacity.
- No 18,000+ TEU vessels were idle.
- Only 8 vessels in the 5,000–18,000 TEU range were inactive.
- Smaller units accounted for most inactivity: sub‑1,000 TEU ships made up 45% of the idle fleet, while 1,001–3,000 TEU ships accounted for 37%.
Ships in shipyards rose slightly to 161 ships / 755,184 TEU, up from 146 ships / 697,434 TEU in mid‑June.
MSC Expands LNG‑Powered Fleet
In July, MSC took delivery of:
- MSC SAVANNAH – a 16,000 TEU LNG‑powered unit, the eighth in a 12‑ship Yangzijiang series ordered in 2022.
- MSC INSA – an 11,480 TEU LNG‑powered vessel, the second in a 10‑ship CIMC ORIC 11500 LNG series ordered in 2023 at ~$120 million per unit.
By month‑end, MSC’s LNG-powered fleet approached 60 vessels, representing about 33% of the global LNG container fleet by vessel count — second only to CMA CGM’s 70+ LNG-fuelled units.
China Emerging as Global Shipbuilding Leader
Half of the world’s Container Ship capacity in service today was built in South Korea, but China is quickly closing the gap — with 72% of the future fleet (by vessel count) already on order from Chinese shipyards.
Alphaliner data reveals a compelling story about upcoming shifts in the landscape of the global Container Ship fleet:
In-Service Fleet (by TEU capacity):
- 2% built in South Korea
- 1% built in China
In-Service Fleet (by vessel count):
- 32% South Korea
- 1% China
Orderbook (TEU capacity):
- 1% of capacity to be built in South Korea
- A commanding 71.9% in China
Orderbook (vessel count):
- 4% South Korea
- 3% China
Looking 5 years ahead (discounting potential scrapping & new orders):
- South Korea-built ships will still lead with 18.3 million TEU
- China close behind with 16.3 million TEU
Demolitions at Two‑Decade Lows
As of mid-2025, less than 4,000 TEU of total capacity has been scrapped worldwide. If this pace continues through the second half of the year, 2025 will mark the lowest annual total of TEU scrapped in two decades.
During the first half of the year, seven container ships, averaging about 500 TEU per vessel, were sent to scrapyards.
While 2022 still holds the record for the fewest vessels demolished (only five), the total TEU removed from the market that year was roughly three times higher than in 2025 so far.
The average age of vessels scrapped in 2025 stands at 28 years, higher than the two-decade average of around 26 years.
Alternative Propulsion Set to Overtake Conventional Capacity
By the end of July, conventional-fuel ships still made up 4,847 vessels (~74% of the fleet) but only 50% of total TEU capacity. The remainder was split between:
- LNG: 195 ships / 2.3 MTEU (7.2%)
- Methanol: 32 ships / 0.3 MTEU (1%)
- Scrubber-fitted: 1,473 ships / 13.4 MTEU (41.7%)
The orderbook showed a clear shift toward low‑emission technology:
- LNG: 347 ships / 5.2 MTEU
- Methanol: 194 ships / 2.5 MTEU
- Scrubber-fitted: 148 ships / 1.2 MTEU
These newbuilds are also in many cases, ULCS Megamax-class vessels exceeding 18,000 TEU. As they hit the water, the low-emission and alternative-propulsion segment is set to overtake conventional tonnage in TEU share for the first time in history — a defining milestone in container shipping's energy transition.
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