With the unprecedented growth of the shipping transportation demand, substantial vessels have been built and delivered to the market. This has led to oversupply after the financial crisis in 2008 because of the abrupt decrease in transportation demand. Notwithstanding the importance of shipping market studies in the investment decision-making, there are relatively few empirical studies modelling the impacts on the structural changes of the fleet supply variables. By considering new orders, current fleet size, and demolitions in ship capacity supply, this study develops a systematic model in both bulker and container markets. The three-stage least squares method is employed to estimate the model to avoid endogenous issues. The primary finding suggests the significant impact of market, cost, and operational factors on fleet capacity supply. It also reveals the relatively rational activities in ordering new vessels and cautious in demolition decisions in the container market because of the large capital investment required. These are relevant to investment and demolition decisions in both the bulker and container markets.