41% of newbuild orders are alternative fuel capability

As 2021 draws to a close, it is exciting to see the result of pent-up demand and how attractive markets in many sectors has increased owners’ appetite for tonnage – spending this year is 46% above average annual spend at $147bn.

Last year, spend came in at only $74bn thanks to the disruption caused by the initial impacts of Covid-19, and across the past three years there has been an average of $100bn annual spend. Having bounced back relatively quickly from pandemic related disruption, it is reassuring to see annual global delivery volumes returning to what could be described a ‘normal’.

Investment into newbuild tonnage has totalled $103bn which is set to be the highest level seen since 2013. Containerships have had somewhat of a spending spree this year with $41bn; a further $15bn invested into LNG carriers and $14bn in bulk carriers.

The investment in LNG newbuilding is nearing historic levels – orders were placed for 63 large-capacity vessels (compared to 69 orders in 2019 and 77 orders in 2018). LNG capable units form part of the total $43bn spend into alternative fuel options as the move towards cleaner shipping solutions gains traction.

You can read the full article as published in TradeWinds, here.

The Sale and Purchase team is actively advising clients on their vessel investment strategies, aligning to the industry’s drive towards decarbonisation. With shipping now subject to EU Emission Trading systems and with growing commitment to voluntary initiatives such as The Poseidon Principles, the investment figures that we see around alternative fuel ships echo the shift of our industry towards greener and more sustainable solutions.