Greek owners make largest newbuild investment since 2013

Greek shipping companies committed 60% more newbuild investment year-on-year ($18bn and also the highest Greek investment by dwt since 2013) and, for the first time since 2018, European owners committed more investment than Asian, according to new research for the shipbuilding market in 2023 from Clarksons Research.

Greek shipping companies invested around $18bn, the highest Greek investment by dwt since 2013, whilst China produced 50% of yard output and also dominated ordering, a new Clarkson analysis says.

Global shipyard output increased 10% year-on-year to 35m CGT in 2023, with China delivering 50% of output by CGT for the first time (South Korea delivered 26%, Japan 14%).

China was a market share leader in bulkers, tankers and containers, whilst South Korea lead in LNG.

Good flow of new orders reported, whilst newbuild prices were up 10% across 2023.

Summarising the review, Steve Gordon, Managing Director of Clarksons Research, also commented:

“2023 was a year of recovering output, increasing prices and a good flow of orders for the global shipbuilding industry. On a regional level, China produced 50% of yard output and also dominated ordering, while alternative fuels moved to nearly 50% of orderbook tonnage. And while the 2024 delivery profile is dominated by container and gas, the product mix of new orders tilted towards tankers and bulkers.

“Orderbook up only 4% year-on-year to 124m CGT with an aggregate value of $367bn, 50% of the orderbook by tonnage now alternative fuelled, forward yard cover at a strong ~3.5 years.

“Further declines in number of active yards (building above 20,000 dwt), shipyard capacity down ~35% on peak production.

“Underlying fleet renewal requirements remain as fleet ages and emissions regulation accelerates.”

Dr. Nikolas Tsakos, founder and CEO of Tsakos Energy Navigation, listed on the American stock market of the NYSE, gave recently an overview of the company in an interview on the Watch List with Nicole Petallides, lead anchor at the Schwab Network.

“Greece is a small country of 11 million people and yet the Greeks control, depending on the type of ships, from 20% to 25% of the world’s tonnage. So, in conclusion ¼ has been transported by Greek ships,” Dr. Tsakos commented.