Despite a 15% dip in average annual earnings, the shipping industry displayed remarkable resilience in 2023. Strong second-hand values and a significant reduction in new building deliveries played pivotal roles, maintaining earnings at the third-highest levels since the 2008 financial crisis.Ageing Fleet Dynamics
A notable consequence of reduced recycling and limited new building deliveries was the ageing of the product tanker fleet. The average age increased by nine months in 2023, reaching levels not seen since 2005. This trend saw 12% and 39% of product tankers exceeding 20 and 15 years of age, respectively.
Renewal Initiatives and Sustainability Focus
In response to the ageing fleet, 2023 marked a turning point with substantial steps taken to renew the industry. New ship contracting reached a 10-year high, doubling the order book’s size. While Chinese shipyards continued to dominate, the contracting surge focused on MR and LR2 product tankers. Additionally, an increasing focus on sustainability was evident, with 97 ships in preparation for alternative fuels and 19% of the order book dedicated to such environmentally conscious vessels.
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Source: BIMCO
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