M
ore and more shipyards are coming back online, or are expanding their existing facilities, in order to cope with growing demand for new ships. In its latest weekly report, shipbroker Xclusiv said that “newbuilding activity remains robust with vessel deliveries extending to 2028 for bulkers, tankers, and containers, and up to 2030 for gas carriers. Consequently, many shipyards previously idled for years are now either reopening or expanding. Although China has expanded its shipyard capacity through reactivation and expansion, a significant labour shortage could impede its growth rate. As of June 2024, the unemployment rate in China was 5%, meaning that the percentage of the total unemployed labour force actively seeking employment and willing to work is sufficient. On the contrary, other Far East countries like Japan and South Korea, with unemployment rates of 2.6% and 2.8% respectively in June, could encounter labour shortages if they continue to reactivate and expand their shipyard facilities”.
Source: Xclusiv
According to Xclusiv, “analysing the orderbook for BC, Tankers (both for vessels >= 10,000 DWT), Container and Gas, we observe that Chinese shipyards play a dominant role in newbuilding activity, accounting for 60% of the total orderbook. Breaking down the four main sectors, 67% of the BC orderbook is being constructed in China, while Tanker and Container orderbook have similar percentages at 65% and 64% accordingly. Chinese yards hold a 33% market share of the gas orderbook, placing them in second position. Of the nearly 2,000 vessels on order in China, 41.5% are BCs, while Tankers, Containers and Gas account for 27.5%, 21.1% and 9.6% respectively. Ultramaxes and Kamsarmaxes are the dominant forces in the Chinese bulker orderbook, accounting for 36% and 31% respectively. In the Chinese tanker orderbook, Aframaxes/LR2s, MR2s, and small tankers (10,000-25,000 dwt) each hold approximately 24% of the market share. Feeders dominate the container orderbook at 37%, while LNG carriers (101,000-200,000 CBM) and VLGCs together comprise 60% of the gas carrier orderbook”.
“Despite having no bulker orders, South Korean shipyards hold the second-largest market share with 20% of the total orderbook. In the Tanker and Container orderbook, South Korean shipyards hold approximately 16% and 25% respectively, whilst the Gas market dominates with a 61% share. Out of 660 vessels on order in South Korea, Gas carriers comprise 55% of the orderbook, while Tankers and Containers account for 20% and 25% respectively. MR2 and Suezmax orders dominate Korean shipyards, accounting for 48% and 28% of the orderbook respectively. On the container side, Korean shipyards are clearly preferred for very large Containers, with nearly 60% of their orders dedicated to vessels capable of carrying more than 12,000 TEU. Regarding Gas carriers, 70% of orders are for LNG carriers in the 101,000 – 200,000 CBM range, while 22% are for VLGCs”, Xclusiv said.
Source: Xclusiv
“Last but not least, the Japanese shipyards possess the third place with 16% of the total orderbook being currently built there. Examining the four primary sectors, 27% of the bulk carrier orderbook is being constructed in Japan. In contrast, the Tanker, Container, and Gas segments hold the smallest shares, accounting for 11%, 9%, and 6% of the orderbook of each category respectively. Currently, 520 vessels are under construction in Japan. Bulk carriers comprise 65% of this total, followed by tankers at 18%, containers at 11%, and gas carriers at 6%. Handysize and Ultramax orders dominate Japanese shipyards, accounting for 34% and 25% respectively”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
