Clarksons’ 2023 Shipbuilding Review: Shipyard output up 10%, China delivering half of all newbuilds

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Clarksons Research has released a review of the global shipbuilding market in 2003. Summarising the review, Steve Gordon (pictured), Managing Director of Clarksons Research, commented:
“2023 was a year of recovering output, increasing prices and a good flow of orders for the global shipbuilding industry. On a regional level, China produced 50% of yard output and also dominated ordering, while alternative fuels moved to nearly 50% of orderbook tonnage. And while the 2024 delivery profile is dominated by container and gas, the product mix of new orders tilted towards tankers and bulkers.

Key data points include::
– Global shipyard output increased 10% y-o-y to 35m CGT in 2023, with China delivering 50% of output by CGT for the first time (South Korea delivered 26%, Japan 14%).

– China market share leader in bulkers, tankers and containers, South Korea lead in LNG.

– Good flow of new orders reported with excess 41.7m CGT of $115bn reported (down in CGT and value, up in DWT and GT).

– Orderbook up only 4% y-o-y to 124m CGT with an aggregate value of $367bn, 50% of the orderbook by tonnage now alternative fuelled, forward yard cover at a strong ~3.5 years

– Further declines in number of active yards (building above 20,000 dwt), shipyard capacity down ~35% on peak production.

– Underlying fleet renewal requirements remain as fleet ages and emissions regulation accelerates.

– Newbuild prices up 10% across 2023, within 7% of peak 2008 pricing but 35% down on an inflationary adjusted basis.

– Greek shipping companies committed 60% more newbuild investment y-o-y ($18bn and also the highest Greek investment by dwt since 2013) and, for the first time since 2018, European owners committed more investment than Asian.”

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