Financing of the shipping industry is again on the agenda as new investments are needed to keep up with the upcoming fleet renovation drive and market growth.
According to Clarksons data, the cost of financing the shipping industry over the decade from 2014 to 2023 could be around USD 1.4 trillion, a massive step up from the 90s.
“ But the business has changed dramatically since the early 1990s when it was mostly about tankers, bulkcarriers and containerships. In the coming decade only half the investment (about USD 760 billion) is to finance the replacement and expansion of these core fleets,” said Martin Stopford, President of Clarkson Research .
According to Clarksons estimate, two market segments are likely to generate a lot of value-added over the coming decade, those being LNG tankers and cruise ships. Together they account for about 20% of the projected investment, according to Stopford.
“The other big segment of potential investment for the shipyards is offshore. In the early 1990s that was, like the proverbial dodo, an extinct entity, with little business on offer. But the relentless pressure on energy supplies, both oil and gas, and the focus on mobile facilities, suggests this might account for as much as 30% of future shipyard investment,” added Stopford.