ClarkSea Index 2024 Shipping Market Review

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  • Averaged $24,964/day in 2024, up 6% y-o-y and 30% above the ten-year trend.
  • Container freight rates rose by 149%, bulk carriers (Capesize) earnings surged by 76%, and offshore wind day rates increased by 30%.
  • Seaborne trade volumes grew 2.4% to 12.6 billion tons, with ton miles increasing by 6.2%, marking the highest shipping demand growth in 15 years.
  • Global fleet grew by 3.4% to 2.4 billion DWT, with 49% of newbuilds being alternative-fueled vessels, predominantly LNG-powered.
  • Red Sea rerouting and Russian oil redistribution reshaped trade flows, with 328 vessels added to sanction lists in 2024.

The ClarkSea Index recorded robust performance in 2024, averaging $24,964/day. This marked a 6% year-on-year increase and a 30% rise over the ten-year trend. Despite some softening in rates during the fourth quarter, the shipping industry demonstrated resilience, supported by active fleet renewal and the most dynamic newbuild market since 2007, reports Robban Assafina.

Sectoral Insights

The container market experienced a record-breaking year outside the COVID-19 period. Freight rates surged 149%, and charter rates grew by 48%, driven by Red Sea rerouting, higher volumes, and seasonal congestion. Bulk carriers, particularly Capesize vessels, saw an earnings increase of 76% year-on-year, bolstered by strong Chinese demand for iron ore and coal.

Tanker rates softened slightly, influenced by flat global oil trade volumes, but earnings remained 46% above the ten-year trend. LNG and VLGC rates eased from their 2023 peaks. Offshore oil and gas day rates rose by 20%, while the wind sector posted a 30% increase. Meanwhile, cruise passenger numbers hit a record 35 million, and the car carrier market began to stabilize.

Global Trade Dynamics

Global seaborne trade volumes rose by 2.4% to 12.6 billion tons, with ton miles increasing by 6.2%, driven by disrupted trade flows such as Red Sea rerouting and Russian oil redistribution. The Panama Canal returned to normal operations after earlier restrictions. However, geopolitical uncertainties, including tariffs and sanctions, continue to shape trade patterns.

Fleet Development and Market Trends

The global fleet expanded modestly by 3.4%, reaching 2.4 billion DWT. Container fleet growth outpaced other segments at 10.1%, while tanker fleet growth was limited to 0.8%. Shipyards increased output by 13%, with alternative-fueled vessels comprising 49% of newbuild orders. Demolition rates dropped by 20%, and the value of the world fleet reached $2.0 trillion.

Looking Ahead to 2025

The shipping industry enters 2025 with a cautious outlook. Geopolitical tensions, such as Red Sea disruptions and Russian sanctions, are expected to persist, influencing trade flows. Managing these disruptions and maintaining operational efficiency will remain critical as the industry navigates an evolving global landscape.

 

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Source: Robban Assafina