6% of Fleet Tonnage Now Capable of Alternative Fuel

Clarkson Research’s latest forecast for the global shipping markets, Shipping Review & Outlook, indicates positive market conditions across various sectors in the industry. Key pinch points identified by industry analysts include geopolitical disruptions to trade patterns and increasing emissions regulations driving market dynamics.

According to a recent report from the brokerage, total shipbuilding output and newbuild prices both saw a 10% increase in 2023. This growth was accompanied by China’s shipbuilding industry reaching half of the total yard output and alternative-fuelled vessels nearing 50% of the total orderbook tonnage.

Trade volumes also saw a 3% growth to reach 12.4 billion tonnes in 2023, with China’s trade playing a significant role. Clarksons projects further growth of 2% to 12.6 billion tonnes in 2024.

Events in the Red Sea, where vessels are targeted by Yemen’s Houthi militants, have impacted shipping demand and led to diversions, benefitting larger vessel classes offering economies of scale. Red Sea traffic accounts for about 10% of global trade, with vessels rerouting via the Cape of Good Hope due to disruptions.

Clarksons estimates that diversions are generating an additional 3% in global vessel demand, with the container sector alone seeing an 11% increase. The firm also anticipates continued interest in newbuild orders, particularly from the tanker sector, and ongoing environmental fleet renewal programs from cargo and liner companies.

The introduction of a carbon price mechanism and environmental regulations, such as the EU ETS extension to the maritime sector, are expected to drive shipowners to invest in improving vessel and fleet environmental performance. The report also highlights trends in green technology uptake and fleet renewal in the coming years.

Shipbuilding slot availability is tight, with prices up 40% since 2020. Recycling has been limited, while the sale and purchase markets have been active, with older tonnage finding new employment at a premium. Spot freight rates have doubled since early December 2023, with charter rates up 37%, indicating a positive trend in the industry.

spot_img

More from this stream

Recomended

“Steve Soechtig appointed Global CEO of Experience at Ogilvy, enhancing client services”

NEW YORK — January 20, 2021 — Ogilvy announced today that Steve Soechtig has been appointed Global Chief Executive Officer of Ogilvy's Experience business. With over...

‘Discover MouthHealthy: Your Ultimate Guide to Dental Wellness’

In the digital age, it is becoming increasingly important to have access to reliable and comprehensive information on health and wellness. When it comes to oral health, MouthHealthy.org has emerged...

Creators are compensated for creating videos to train generative AI.

According to a recent Bloomberg report, Adobe is paying creators for videos to help develop its generative AI. It seems that Adobe is keen to keep...

Revolutionizing the World of Web Design with Ovatheme

In the ever-evolving digital landscape, having a visually stunning and user-friendly website is crucial for businesses to thrive. Ovatheme.com, a cutting-edge web design platform, aims to empower...

Private Dinner with Schiff, Roubini, Scaramucci at ZeroHedge Debate- Exclusive Event

Backstage, Private Dinner At ZeroHedge Debate With Schiff, Roubini, Scaramucci On May 3, ZeroHedge is partnering with Crypto Banter to bring together top macroeconomic minds to debate...

Voyager 1 probe is now making sense

After five months of gibberish, Voyager 1 is finally talking to NASA again. The 46-year-old probe randomly started submitting funky data to NASA back in November,...