Active Shipyard Numbers Jump by 17.7% in Two Years

Data released by Greece’s Xclusiv Shipbrokers suggests that the current newbuild boom has resulted in a jump in the number of active shipyards over the past two years. 

In terms of hard numbers, Xclusiv Shipbrokers claims that active shipyard numbers have climbed from 153 in June 2022 to 180 in June 2024. China has accounted for the majority of this growth. 

This growth is perhaps not surprising when one considers that many shipbuilders are enjoying very long order books as well as high newbuild prices. 

The data finds that ‘the orderbook-to-fleet ratio according to Xclusiv for bulk carriers, tankers, containers, and gas carriers stood at 9.3%, 10%, 20.3%, and 47.7%, respectively’. 

Xclusiv also found that the orderbook-to-fleet ratio for bulk carriers, tankers, and gas carriers has grown by 43%, 72%, and 48% respectively over the past two years. 

Data from other sources also reinforces the contention that shipyards are seeing a spike in activity. For example, industry membership body BIMCO, has recently reported that during the first months of 2024, one million TEU of containership capacity has been delivered, an increase of nearly 80% compared to the previous record. 

This follows a record 2023, when 2.3 million TEU of containership capacity was delivered, beating the former record by 37%. 

Clarksons Research has also recently released data which paints a rosy picture of shipyard activity. According to the research firm, shipyard production during Q1 2024 reached a seven-year quarterly high of 10.1m cgt. And, this growth is set to continue if Clarksons Research is correct. The company predicts a 15% increase in shipyard output for the full year 2024, reaching 40.6m cgt.

This growth in orders and activity, however, will potentially lead to bottlenecks - with shipyard capacity becoming a limiting factor in production output. 

It’s a situation which was anticipated by the Review of Maritime Transport 2023 published by the United Nations Conference on Trade and Development (UNCTAD). A central theme of this report was the need for shipyards to expand quickly (although in this context it was to aid with shipping’s green transition).

The report stated: 

‘Shipyard capacity is currently facing constraints. Tanker and dry bulk owners are anticipating long waiting times and high building prices. Increasing shipbuilding capacity is crucial to ensure that shipping meets global demand and its sustainability goals’.

It’s clear that the shipbuilding has taken these warnings seriously, with new shipyard capacity now starting to hit the market. 

China, in particular, is picking up the slack, making attempts to either open new yards or reactivate shuttered ones. Take New-Times Shipbuilding, for example. One of China’s largest privately-owned shipyards, it is awaiting government approval for a new drydock. Brokerage firm Gibson suggests that Q1 2027 deliveries from this yard will open once it gets the green light from the Chinese government.

Other yards in China have recently restarted (or are in the process of doing so). STX Dalian - which is now under the management of Hengli Heavy Industries Group - restarted in January 2023. 

A similar example is Quanzhou Shipyard, which entered bankruptcy in 2019. Since then, an agreement has been reached with a local government-owned company to invest and reorganise the yard. The yard started production again in September 2023.

As these examples and others demonstrate, the newbuild boom looks set to continue - particularly in light of the need for ongoing decarbonisation of the global fleet. 

Shipbuilding support from Brookes Bell

Are you planning to engage in a newbuild project? Then ensure you’re in contact with Brookes Bell from the very beginning. 

Our naval architects and marine engineers offer a range of marine design and project management services that can support owners from concept/feasibility through to vessel operation and site attendance. 

Plus, with offices across the globe - including major shipbuilding hubs like Shanghai - you’re never far from the support of a Brookes Bell shipbuilding specialist. 

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