Clarksons 2024 Global Shipbuilding Review Released
Clarksons Research have released their latest annual review of shipbuilding markets, including full year 2024 data points, tracking key developments across a strong year for the shipbuilding industry.
Summarising the annual review, Steve Gordon, Global Head of Clarksons Research, commented: "With the largest order intake in 17 years, 2024 was an incredibly active year for the global shipbuilding industry with contracts totalling 66m CGT and $204bn placed. Container (4.4m TEU of orders), gas (25.9m cbm) and tankers (53.9m dwt) were the “stand out” segments while China consolidated its lead position, taking two thirds of orders, and is the only major producer expanding capacity."
Newbuild demand in 2024 was both strong overall and cross-sector in its focus. With a supportive freight market (driven by Red Sea re-routing) and underlying green fleet renewal commitments, liner companies were exceptionally active in committing to over $38bn of orders (72% of TEU ordered was from “liner”, 9 of the top 20 lines placing orders for >12,000 TEU ships). There was also a good flow of gas carrier orders (up 34%) with 77 large LNG carriers and 78 VLGC / VLAC / VLECs and tanker ordering also increased by 41% in dwt terms. Encouragingly for European yards, there was a return to orders for large cruise vessels (10 orders). There was a steady flow of bulkers and some active niches (e.g. 69 car carriers, 19 C/SOVs, 6 FPSOs) and ordering opportunities for small vessels may also start to expand (due to an ageing fleet). The overall orderbook has increased to 364.5m dwt and 15% of the fleet (2008: 628.8m dwt / 52%) but is still weighted towards liner and gas (container 27% of the fleet, LNG 50%, PCTC 38%). The bulker (11%) and tanker (14%) orderbook ratios remain low (there are only 5 VLCCs delivering this year). Given the very strong flow of orders last year, activity in 2025 may well be a little quieter overall even if long term fleet renewal requirements remain very strong.
Global shipyard output increased by 13% in 2024, with China (output +18% y-o-y, 53% market share by CGT) and South Korea (+22%, 28% share) increasing and with output marginally declining in Japan (-3%, 12% share) and Europe (4% share). In ordering terms, China took over two thirds of all contracts by tonnage and achieved market leading positions in all main sectors aside from gas. Having “bottomed out” in 2020, production from the more consolidated global shipyard landscape has been steadily increasing (driven by higher utilisation) and this output trend is set to continue with capacity expanding in China (we are tracking a list of projects involving expansion of existing and reactivation of dormant facilities (these are not “greenfield”)).
There are also some much smaller but interesting expansion plans in India and Saudi Arabia with other countries also looking strategically at their shipbuilding positions. Our newbuild price index edged up 6% over the year but with some softening in certain segments towards year end. Our index almost reached the levels of 2008 (still ~30% below on an inflationary adjusted basis). Yards remain in a relatively strong position for the moment (avg. forward cover of 3.8 yrs), especially if demand remains solid.
Half of orders by tonnage in 2025 have involved alternative fuel, with LNG dual fuel dominating. There has been a wide range of impressive innovations around Energy Saving Technologies (ESTs), becoming increasingly “standard” on many designs. With the introduction of FuelEU Maritime at start 2025 and important (“mid-term measures”) meetings at IMO in the spring, the shipbuilding industry will be keen that emissions regulations move “forwards and not sideways”.
So an incredibly active year for yards and their suppliers in 2024 and the New Year might just allow them to “catch their breath” (if geo-politics allow).