More and more shipyards are coming back online, or are expanding their existing facilities, in order to cope with growing demand for new ships. In its latest weekly report, shipbroker Xclusiv said that “newbuilding activity remains robust with vessel deliveries extending to 2028 for bulkers, tankers, and containers, and up to 2030 for gas carriers. Consequently, many shipyards previously idled for years are now either reopening or expanding. Although China has expanded its shipyard capacity through reactivation and expansion, a significant labour shortage could impede its growth rate. As of June 2024, the unemployment rate in China was 5%, meaning that the percentage of the total unemployed labour force actively seeking employment and willing to work is sufficient. On the contrary, other Far East countries like Japan and South Korea, with unemployment rates of 2.6% and 2.8% respectively in June, could encounter labour shortages if they continue to reactivate and expand their shipyard facilities”.
Source: Xclusiv
According to Xclusiv, “analysing the orderbook for BC, Tankers (both for vessels >= 10,000 DWT), Container and Gas, we observe that Chinese shipyards play a dominant role in newbuilding activity, accounting for 60% of the total orderbook. Breaking down the…