According to the global newbuilding market situation so far this year, the newbuilding orders for containerships and bulk carriers are gradually decreasing, while the newbuilding orders for liquefied natural gas (LNG) carriers and liquefied petroleum gas (LPG) carriers are gradually increasing.
As of June 17, the cumulative order book for the global newbuilding market in 2024 had reached 833 vessels, according to Clarkson data. The shipbuilding direction of shipping companies is shifting from traditional cargo-carrying vessels, such as bulk carriers and containerships, to high value-added vessels, such as LNG carriers and LPG carriers.
In terms of ship types, global shipowners have ordered 191 tankers in 2024, up 7% year-on-year; 76 LPG carriers, up 48% year-on-year; and 58 LNG carriers, up 93% year-on-year. During the same period, the order book for container ships was 58, down 33% year-on-year, while the order book for bulk carriers was 175, down 41% year-on-year.
Industry analysis says that the shipping boom during COVID-19 is the main reason for this order phenomenon. In line with the two to three year shipbuilding cycle, containerships and bulk carriers ordered during COVID-19 have been delivered one after another, resulting in a relatively low appetite for shipbuilding by shipowners. In contrast, LNG/LPG carriers ordered and delivered many years ago are about to reach the end of their normal service life (about 20 years) and are now in the process of fleet renewal. Furthermore, the increasing demand for LNG/LPG carriers is also one of the reasons for the increase in the number of orders for the vessels concerned.
As of the end of May, the Clarkson Newbuilding Price Index stood at 186.42 points, compared with 127.32 points in May 2020, 136.14 points in May 2021, 160.07 points in May 2022 and 170.10 points in May 2023, which is on a steady rise, implying that shipbuilders are able to secure newbuilding orders at higher costs.
