In the container shipping market dominated by ultra-large vessels and record-breaking new ship orders, the long-overlooked “feeder ships” are gradually becoming the industry’s focus. The latest market analysis from shipbroker Intermodal shows that against the backdrop of large-scale delivery of large vessel capacity and increasing concerns about oversupply in the next two years, the feeder ship market, conversely, demonstrates scarcity and resilience due to tight supply, high average vessel age, and stable regional trade demand.
Yiannis Parganas, Head of Research at Intermodal, stated bluntly that the contrast between feeder ships and the overall container market is extremely stark. Currently, the /fleet ratio for all container ship types is close to 30%, with the ratio for 12,000 to 16,999 TEU New Panamax and ultra-large vessels as high as 44%. The market will face a massive influx of new capacity in the next two years; the global container fleet is expected to grow by 6.7% in 2025 alone, with New Panamax vessel growth nearing 17%. By 2026, although the growth rate slows, it remains at 4%, far exceeding long-term demand trends. In contrast, the ordering attitude for feeder ships is extremely restrained, with the orderbook accounting for only 4.93% of the fleet, nearing a historical low. Newbuilding activity remains balanced, with the ordering level in 2025 similar to last year, merely a fraction of the frenzy seen in the post-pandemic market.
More importantly, the fleet structure of feeder ships itself is accelerating its differentiation. Currently, over 28% of the vessels are over 20 years old, and the average fleet age exceeds 15 years. Against the backdrop of tightening environmental regulations and rising operating costs, the retirement of older vessels is almost inevitable. In the next 18 to 24 months, more feeder ships will head to scrapyards. That is to say, feeder ships not only face no pressure from new capacity but are actually contracting. By 2026, the fleet size is projected to decrease by 1.3%, the largest contraction since 2016. In an industry where other segments are still “building ships frantically,” this structural tightening is a rarity.
From the demand side, feeder ships also possess inherent advantages. In 2025, global container trade is forecast to grow by 2.5%, with ton-mile demand growing by 2.2%; in 2026, the growth rate is expected to slightly increase to 2.7%. Although these figures seem modest compared to the peak years before the pandemic, for a market segment with almost no new fleet growth, it is sufficient to support robust capacity utilization. Feeder ships primarily operate on regional routes, naturally aligning with this type of moderate growth. Unlike large vessels that rely on deep-sea trunk lines and are susceptible to demand fluctuations and freight rate volatility, feeder ships serve the stable cargo flows between regional ports and trunk hubs. Taking Asia as an example, supply chain regionalization and the “China+1” manufacturing shift continue to boost cargo volumes within the Asia-Pacific region. In Europe, the dense network of secondary ports, coupled with the trend of “nearshoring,” and the expansion of Mediterranean and Black Sea routes, all rely on feeder network support. The role of these routes cannot be replaced by large vessels.
Earnings performance further confirms the resilience of feeder ships. Since 2025, the time charter rates for 1,000 TEU container ships have accumulated a nearly 14% increase, while the 1,700 TEU ship type has seen an increase of over 21%. The long-term trend is also encouraging; the three-year time charter rates for the 1,700 TEU ship type have surged nearly 25% since the beginning of the year, reflecting both the scarcity of market tonnage and showing that carriers are willing to lock in long-term capacity.
Parganas emphasized that the prominence of the feeder market lies precisely in its ability to somewhat detach from the gravitational pull of “global megatrends.” Compared to large ships, which often measure in tens of thousands of TEUs and see continuous order bursts, feeder ships seem more like “contrarians,” following a different logic—prudent ordering, natural renewal, and an irreplaceable role in global trade. Precisely because of this, the fundamentals of the feeder market are once again attracting capital attention. Recent newbuilding orders have shown a moderate recovery, which not only reaffirms confidence in the segment but also suggests that the feeder market may be entering a phase of long-term strength and prominent strategic value, driven by the dual support of tightening supply and regional demand.
