Orderbook Vs. Shipping Rates

The orderbook as a percentage of total fleet peaked in 2008 at 50%. Today, the orderbook to fleet level is at 20%, so there are not a lot of ships being built. Even if they are being built, it takes around 2 years to build one.


History shows that when the orderbook to fleet ratio is low, the baltic dry index spikes. This is because shipping rates rise due to a constraint in supply of ships. Once the orderbook to fleet ratio rises again to a certain level, the baltic dry index will start to go down again.
 



For more info on container shipping, go here.

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