As the global shipping market gradually cools from the super-cycle of ocean container shipping, small feeder container ships are quietly becoming the new darling of investors and owners. From Greek shipping magnate Evangelos Marinakis splashing $1.6 billion to order 14 new ships in South Korea, to the low-key yet determined expansion of Erasmus Shipinvest frequently snapping up vessels, to Danish investment firm Capito Capital making its first foray into this sector—all signs indicate that feeder ships, once overlooked by the market, are reclaiming the spotlight.
Leading Owners Stage Strong Comeback; Small Ship Orders Surge Again
In April 2025, Capital Maritime, under Evangelos Marinakis, placed a single order for 14 feeder container ships at HD Hyundai Mipo Dockyard—six 1,800 TEU Bangkokmax vessels and eight 2,800 TEU Chittagongmax vessels—totaling nearly $1.6 billion, with delivery expected by 2027. This move not only reshaped market perceptions of feeder ship investment value but also triggered a wave of "chain reactions."
Regional carriers like SITC and Ningbo Ocean Shipping swiftly followed suit. SITC added two 1,800 TEU orders at Huanghai Shipbuilding (SITC’s Q1 revenue surged nearly 40%! New orders increase to 10 ships!), while Ningbo Ocean plans to invest ¥1.4 billion in four 2,700 TEU vessels (Shipyards take note! State-owned carrier announces 4-ship newbuild plan!). Data shows that in just two weeks in late April, 50 new container ship orders were confirmed globally, over half below 3,500 TEU, signaling the "investment heat" for feeders continues to rise.
Additionally, Jiangsu Ocean Shipping recently ordered up to 10 feeder-type container ships (Two deals in one day! Jiangsu Ocean signs for 10 new boxships!).
Mid-Sized Owners Join the Action: Erasmus Shipinvest Accelerates "Ship Snapping"
Beyond major capital players, mid-sized owners are also accelerating their entry into the feeder market. Erasmus Shipinvest Group completed acquisitions of five feeder container ships (1,096–2,741 TEU) in 2025, expanding its fleet to 10 vessels (10 ships! Erasmus Shipinvest "aggressively" buys small feeders!). These vessels typically feature reefer capacity and have secured charters from giants like CMA CGM and ONE, forming a robust income-generating portfolio.
Erasmus’ strategy predates the intensifying U.S.-China rivalry and geopolitical conflicts. Its shift from large to small vessels and diversification to specialization precisely responds to structural shifts in global shipping.
Financial Capital Steps In: Capito Capital Bets on Feeders
As traditional owners and liners pile into the small-to-midsize boxship market, financial capital is also targeting this "structurally undervalued" sweet spot. Copenhagen-based private investment firm Capito Capital Management is preparing to close its first investment in 1,000–3,000 TEU feeder container ships.
CEO Christian Friis calls the feeder market "chronically underinvested" yet "one of the most exciting segments in shipping today." While rumors swirled about Capito acquiring the 1,781 TEU "H Mercury" (built 2022, Chinese-owned), Friis denied this but confirmed they are "very close to finalizing our first deal."
Unlike traditional owners, Capito prioritizes stable rental returns over short-term asset flipping. "We target vessels with long-term charters, not short-term market bets," he stressed. Capito recently secured a 40% strategic stake from Sweden’s Ramlosa Shipping, which jointly holds multiple small-to-midsize vessel assets with firms like Leonhardt & Blumberg.
Capito’s entry signals financial capital moving into a feeder asset domain long dominated by operational owners, heralding a more dynamic, transparently valued market phase.
Why Feeders? Three Pillars Driving the Investment Boom
Severe Fleet Aging, Urgent Renewal Demand
Braemar data shows 20–23% of 1,800–2,900 TEU vessels are over 20 years old, projected to hit 45% by 2030. Yet current new orders for this segment are extremely scarce, making up just 1.5–3% of global orders.
Regional Markets Rise, Feeders Become Critical Nodes
Huatai Securities research indicates regional trade lane volumes grew at a 5.8% CAGR from 2001–2023, outpacing ocean lanes (3.6%). Regional routes now account for 71.2% of global volumes (up from 61.1%), projected to reach 71.7% by 2025. Surging local logistics demand in Southeast Asia, Latin America, the Middle East, and Africa has sharply increased reliance on feeders.
Caroline Wu, Maersk Greater China President, stated at Maersk’s 2025 "End-to-End Product Summit" that global supply chains now show three key trends: longer chains (overall end-to-end chains lengthening, regional links multiplying) and greater complexity.
Maersk observes companies shifting from globalization to regionalization to reduce systemic risks, building redundant networks via "multiple routes" and "dual nodes" to create multi-hub, multi-exit structures. Amid U.S.-China friction, Latin America, Southeast Asia, and the Middle East emerge as new client choices. "Customers are consolidating regional supply chains," Wu noted, adding that "regionalization and diversification will dominate the future."
Moreover, Maersk believes future supply chains will face more frequent, unpredictable changes, with regional and diversified layouts strengthening. Companies are rapidly building resilient, predictable networks amid geopolitical shocks, trade policy shifts, and sudden capacity disruptions—Maersk’s end-to-end strategy is a proactive response to this complex reality.
Supply-Demand Imbalance, Vessel Scarcity Intensifies
Currently, 71% of new orders are for mega-ships (12,000+ TEU), leaving sub-3,000 TEU vessels severely undersupplied. Huatai forecasts the annual growth rate for small-to-midsize boxships will plummet from 7.6% (2024–2026) to 0.9%, with scarcity underpinning long-term high vessel values and charter rates.
Clarksons data shows only 158 container ships (900–3,000 TEU) are on order globally, totaling just 280,000 TEU capacity.
Long-Term Rates Hold Firm; Top Players Lock In Deals
Even amid a pressured spot market, long-term charters for small-to-midsize vessels remain strong. CMA CGM rechartered the 3,091 TEU "Lodur" at $31,500/day—over double last year’s rate—highlighting major liners’ focus on regional capacity.
Capito Capital emphasizes its strategy targets stable cash flow via long-term charters, explicitly betting on the "severely undervalued feeder market."
Redefined Standards and Flexibility Advantages
Amid tightening eco-regulations and improved port adaptability, feeder definitions now extend beyond 3,000 TEU. Ship types like Chittagongmax and Bangkokmax cater to medium-sized ports and high-density reefer demand.
Though compact, feeders offer superior port accessibility and route flexibility, proving irreplaceable in near-port markets and island routes.
Feeders: A Choice of the Era, A Return to Value
From capital giants to low-key owners, from newbuilds to secondhand deals, from Southeast Asia to Latin America—feeder vessels are stepping into the spotlight.
They are not just connectors for the next phase of regional supply chains but also "stable-yield, low-risk" assets in owners’ portfolios.
As Clarksons notes: "Even in downturns, small-to-midsize container owners demonstrate exceptional resilience." As global shipping pivots from globalization to regionalization, and mega-routes yield to multi-polar networks, feeders emerge as indispensable players.
The market increasingly recognizes that future supply chains won’t be ruled by "big ships dominating" but by "small ships networking." Feeders will form the foundational units linking multi-port, high-frequency, efficient logistics networks.
Moving from the periphery to center stage, feeders sail toward a promising future.
