Shipyards have experienced a remarkable year, with newbuilding orders reaching levels not seen since 2007. The surge in demand has driven nominal prices close to record highs, reflecting strong momentum across the shipping industry.
According to Clarksons Research, year-to-date newbuild contracting stands at 62.6 million compensated gross tons (cgt), valued at $190.2 billion. This volume recently surpassed 2013’s figures, marking the highest annual level since the all-time record of 94 million cgt in 2007.
Several factors have contributed to this boom, including robust shipping markets, the push for fleet renewal, and increasing competition for shipyard slots. Statistics indicate that current orders equate to 7% of the starting fleet for the year, a level more than 50% higher than the annual average since the financial crisis.
LPG carrier orders have reached an all-time high, while LNG carrier and tanker orders remain strong. However, the container shipping sector stands out as the largest contributor, with 2024 contracting volumes hitting 4.4 million TEU—breaking the previous record of 4.3 million TEU set in 2021.
Given the sustained demand for newbuilds, shipyards are well-positioned to maintain their pricing power. Analysts from SSY suggest that shipyards can weather short-term fluctuations in individual segments without significantly reducing prices, thanks to healthy backlogs and extended delivery timelines.
The current dynamics have sparked discussions across the industry. Some experts note that while newbuild prices are high, longer delivery schedules could pose challenges for shipowners. Consolidation among shipbuilders may also play a role in sustaining elevated prices and profitability in the near term.
With strong fundamentals and continued investment across shipping markets, 2024 has cemented itself as a standout year for shipyards. This momentum underscores the resilience and adaptability of the global maritime industry.
