US$40 Billion Newbuild Vessel Orders Placed This Year

4 Sep 2018, Global – The global shipbuilding industry has secured 623 newbuild vessel orders so far this year, amounting to US$40 billion in contract value. This is 7% lower compared to a year ago. This has raised the global shipping industry’s orderbook to fleet ratio to 10%, a relatively benign level compared to historical years.

Demand for Cruise Ships, LNG Carriers and Tankers Drives More Than Half of Global Newbuild Vessel Orders Year-to-date

Cruise Ships account for 19% of the global newbuild vessels on order so far this year or US$7.5 billion in value terms. This is followed by LNG Carriers at 18% and Tankers at 17%.

Chart: Global Newbuild Vessel Orders by Contract Value (Jan-Aug 2018)

Global Newbuild Vessel Orders by Contract Value (Jan-Aug 2018)

Rising Investor Interest in Containerships, LNG Carriers & LPG Carriers

The value of LNG Carrier and LPG Carrier newbuild contracts have more than tripled to US$7.0 billion and US$1.8 billion in Jan-Aug 2018 compared to the same period last year. There has also been a revival of investor interest in containerships, with the value of newbuild contracts amounting to US$5.0 billion – this is four times the amount of containership orders secured a year ago.

Lower Investor Interest in Reefers, Chemical Tankers & Offshore Vessels

There have not been any new orders placed in the Reefer Vessels segment so far this year. The amount of newbuild vessel contracts have also shrunk 97% and 57% y/y in the Chemical Tankers and Offshore Vessels segments in Jan-Aug 2018.

Chart: Growth (Decline) in Newbuild Vessel Orders by Segment (Jan-Aug 2018)

Growth (Decline) in Newbuild Vessel Orders by Segment (Jan-Aug 2018)

Global Orderbook Has Risen to Over 3500 Newbuild Vessels, Amounting to 200 Million DWT and 10.2% of the Global Existing Fleet

The newbuild vessel contracts have increased the global orderbook to 3514 vessels, amounting to 200 million dwt capacity and 10% of the global shipping industry’s existing fleet, a relatively benign level compared to historical years.

The LNG Carriers, Tankers and Containerships segments have the highest orderbook to fleet ratio among the various vessel segments at 23%, 14% and 11% respectively.

Chart: Global Orderbook to Fleet Ratio by Vessel Segment (Aug 2018)

Global Orderbook to Fleet Ratio by Vessel Segment (Aug 2018) 

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