Global shipbuilding capacity is down by 60% from its 2010 peak at around 2,700 ships capacity per annum and yet new analysis from UK-based consultancy Shipping Strategy suggests that in order to be on track with the 2050 green goals laid down by the International Maritime Organization shipbuilding capacity will need to grow by 50% in the next five years.
The juxtaposition comes as shipyards remain loss-making, as they have for more than a decade, despite boasting some of the largest orderbooks ever recorded.
The issue of how shipyards toy with adding capacity forms the lead article in the July issue of Splash Extra.
“If the global fleet is to meet the IMO emission ambitions for 2050, then the entire global fleet needs replacing or refitting,” Shipping Strategy’s founder Mark Williams told Splash Extra, stressing that the industry has just 28 years to reach the target. That means over 3,500 ships a year being built or going into refit, every year, until 2050.
Reactivating mothballed yards is not necessarily an easy task, and few existing shipbuilding companies have the financial muscle or willpower to build new facilities at present given how hard operating conditions have been for yards since 2010. Splash Extra identifies what global shipbuilders will do to meet future demand.
Elsewhere in the monthly subscription title, there’s a look at battery-powered ship developments, regular markets commentary, the best of the July analyst reports while this issue’s in-depth feature looks at how global fleet dynamics will change with the Energy Efficient Existing Ship (EEXI) and Carbon Intensity Indicator (CII) regulations due to come into force soon.
Published on the last Wednesday of every month and priced for as little as $200 a year, Splash Extra serves as a concise monthly snapshot, ensuring readers are on top of where the shipping markets are headed.