ATHENS, July 9, 2025 — The global shipping industry is navigating through one of its most challenging periods in recent years, as armed conflicts, geopolitical instability, and economic uncertainty converge to disrupt freight markets and investment trends. The first half of 2025 has seen a sharp decline in freight rates across most sectors, with containerships being the only exception.
Freight Rates Plunge Across Key Sectors
According to data from Clarksons, the ClarkSea Index, which tracks earnings across all major shipping segments, dropped by 5% year-on-year in H1 2025. The decline is even more pronounced when excluding containerships, with a 31% YoY drop to $17,409/day, falling 1% below the 10-year average.
Performance by Sector:
- Containerships: +79% YoY
- Tankers: -33% YoY
- Bulk Carriers: -31% YoY
- LPG Carriers: -22% YoY
Containerships defied market fears over tariffs and fleet expansion, posting an 80% increase in freight rates, largely driven by rerouting away from the Red Sea due to security threats.
Geopolitical Tensions Disrupt Maritime Trade
The resurgence of attacks on commercial vessels in the Red Sea, Mediterranean, and Baltic Sea — particularly over the past 10 days — has intensified concerns over maritime security. These developments have endangered seafarers and disrupted global trade flows, contributing to market volatility.
Newbuilding Orders Plummet
Investment in new ships has slowed dramatically. Clarksons reports a 54% drop in newbuilding orders and a 15% decline in secondhand sales (S&P) compared to the same period in 2024.
Dry Bulk Sector:
- Only 76 new contracts were signed in H1 2025, down from 355 in H1 2024.
- Greek shipowners, traditionally dominant in this space, placed just 3 orders, compared to 30 last year.
Tanker Sector:
- Global tanker orders fell by nearly 80%, from 486 to 102 units.
- Greek orders dropped from 100 to 32.
High newbuilding prices and concerns over fleet oversupply—over 1,600 bulk carriers are scheduled for delivery between 2024 and 2027—discourage further investment.
Market Outlook and Sentiment
Despite some resilience in crude oil and VLGC markets, the overall sentiment remains cautious. LNG rates were weak due to early deliveries, while car carrier charter rates continued to correct. VLGCs ended the half strong, exceeding $60,000/day.
Analysts from Xclusiv highlight that macroeconomic uncertainty, regulatory pressures, and underwhelming market returns are the primary factors behind shipowners’ conservative stances.
