Clarksons Shipbuilding Review 2022 shows LNG and container vessels dominated new orders

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While global newbuild order volumes fell 20% y-o-y in CGT terms) 2022 was still an active year for the global shipbuilding industry with higher pricing up 15% on average, according to Clarksons Research’s Shipbuilding Review 2002. In general, more complex ships were ordered – including a record 182 LNG orders worth $39bn – and alternative fuel investment increased to a record 61% of tonnage ordered, all supporting a 6% increase in value of orders to $124.3bn.

According to a MD Steve Gordon as published in Clarksons Shipping Intelligence Network, ordering in 2022 was dominated by LNG, which represented 36% of total CGT, together with container vessels with 350 ships and 29% of total CGT, which while down 50% y-o-y was still the third largest on record on a TEU basis. Car Carrier (69 vessels, 2.4 CGT), FPSO and ‘wind’ niches also did well.

Despite improving charter markets, tanker orders fell 64% while bulkers dropped 54%. Increased tanker orders are thought likely for 2023, along with a continued flow of LNG – despite the average price for a 74,000 cbm vessel being $248m at end-2022, up a significant 18% year-on-year, according to Clarksons.

In terms of regional market share of shipbuilding orders by CGT, China and South Korea dominated with 49% and 38% respectively of the total. Japan took a dwindling 16% share – although some very end-year figures may not have been reported, notes Clarksons – while European yards held steady at 5% thanks mainly to cruiseship orders.

From an owner perspective, China ($18.4bn), Japan ($15.1bn) and Italy ($11bn) contributed 36% of investment while Greek owners were biding their time, relatively speaking, appending ‘only’ $8.5 bn.

With only 131 ‘large’ active yards compared 320 in 2009, Clarksons Research estimates shipbuilding capacity now stands some 40% lower than a decade ago.

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