Danish Ship Finance has published its biannual shipping markets review. Contained in the 59-page research document are details of the remarkable ongoing consolidation within the shipbuilding sector.
The ten largest yard groups now control more than 80% of the orderbook but will deliver only 40% of their orderbook during 2021, statistics that Danish Ship Finance pointed out reflect the consolidation process that is shaping the shipyard sector with many of the smaller yards now quickly running out of employment.
Data from Danish Ship Finance shows yard capacity has kept fairly stable at 57m cgt since 2019, but 133 yards with a combined capacity of 10.5m cgt representing 20% of global capacity are scheduled to deliver their last orders during 2021. Yards accounting for another 13m cgt are currently projected to run out of orders in 2022.
133 yards with a combined capacity of 10.5m cgt representing 20% of global capacity are scheduled to deliver their last orders during 2021
Yard capacity remains poorly utilised. The average yard only utilised half of its capacity during 2020. This is expected to increase to 60% in 2021.
Yard capacity around the world peaked in 2008 at 85% and has been on a declining trend since the end of shipping’s last great bull-run.