Broker reports Q1 global bulk carrier orders dropped to lowest periodic total in 2025

The number of new orders for bulk carriers worldwide in the first quarter of 2025 fell to its lowest level in the same period, Greek shipbroker Intermodal said recently.

The shipbroker noted in its latest weekly report that from January to March 2025, only 18 new ships were ordered in the bulk carrier market, totaling 1.6 million DWT.

In terms of deadweight, Q1 2025 had the second-lowest quarterly total on record, with the lowest level being recorded in Q3 2016.

The 18 new bulk carriers ordered in the first quarter of this year included six Capesizes, five Kamsarmaxes, three Handysizes, two Newcastlemaxes, and two Ultramaxes.

Compared with previous years, the number of new ship orders has decreased significantly. In Q1 2024, shipowners ordered a total of 173 bulk carriers totaling 13.9 million DWT. In 2023, 2022 and 2021, new ship orders reached 9.8 million DWT, 10.7 million DWT and 13.4 million DWT, respectively.

Shipbroker BRS meawhile noted in its annual review report that the volume of dry bulk vessel orders rose from 51.8 million DWT in 2023 to 59.1 million DWT in 2024, making it the best year in the past decade.

Analysts predict that newbuilding contracts of about 40 million DWT will be signed in 2025.

Intermodal believes that the weak freight rate is the reason for the sluggish new orders for bulk carriers, which was especially evident for most of the first quarter of this year, thus reducing the momentum of fleet renewal.

The broker remarked that many shipowners prioritise liquidity and operational efficiency over long-term investments.

In addition, despite the slight correction in the cost of new ships, the overall cost is still high.

Intermodal noted that uncertainty about future environmental regulations and propulsion technologies, especially given the IMO's decarbonisation targets, has increased pressure on shipowners to invest in new construction.

Shipyard capacity is another major factor influencing the investment decisions of bulk carrier shipowners. Major shipyards are now operating at near full capacity, and delivery dates have been pushed back to 2027 and later.

Geopolitical developments, including rising trade tensions and proposed US port fees, have also added additional risks to the newbuilding strategy, prompting a more cautious approach in the industry.