Newbuilding contracts have fallen 45% so far this year, but container ships and LNG carriers are still in demand.
And Clarksons Research says prices for new ships are continuing to head upwards.
The UK research company said that 57 vessels of 4.1m dwt or 2.5m cgt were ordered in May, bringing the year-to-date total, excluding June, to 488 ships of 30.3m dwt and 16.3m cgt.
This is 45% lower in dwt terms and 24% less in terms of cgt year-on-year, following firm levels of business in 2021.
Owners have remained busy contracting container ships, adding 210 units of 1.4m teu to the end of May.
Shanghai’s Covid-19 lockdown was lifted on 1 June, with all major shipbuilders now reported to have resumed vessel deliveries and increasing numbers of workers returning to the yards, Clarksons said.
But it is LNG carriers which continue to astonish observers.
A total of 370 of these gas carriers have been contracted since the start of 2018, equivalent in capacity terms to a whopping 79% of the fleet at that point.
In 2021, 86 were ordered, a record number already surpassed in 2022, which has seen 92 new units added to the orderbook.
This is 15% of the capacity at the start of the year.
Project requirements
“This prolonged surge in ordering has been driven by major project requirements, a rush to secure shipyard slots and positive sentiment across LNG with gas markets tight and security of energy supply concerns now to the fore,” said Clarksons Research analyst Trevor Crowe.
The Clarksons newbuild price index reached 160 points by end-May, supported by strong forward cover and firm steel prices.
The guideline price for a 174,000-cbm LNG vessel hit $227m on 31 May, up $17m this year.
The container ship orderbook is now equivalent to 28% of the fleet in teu, while the LNG carrier orderbook stands at 40% of the fleet in cbm.
By comparison, tankers stand at 5% and bulkers 7%.
Recycling activity has remained relatively low in 2022 so far, with 180 vessels of 7.2m dwt reported sold for scrap in the year to date, including 89 tankers of 4.6m dwt.
“With the market outlook in most sectors remaining positive, demolition is projected to remain limited in the rest of 2022, with circa 19m dwt forecast to be scrapped in the full year,” Crowe said.
