Newbuilding requirement report shows good growth opportunities for the danish maritime industry

Danish Maritime and SEA Europe have presented a report, taking a look at the future of the newbuilding of ships globally. The report shows good growth opportunities, with an average annual growth in shipbuilding of 4% up to 2040. This is mostly driven by trade growth and the decarbonization of the economy, which are important factors in the demand for new ships.

The increased focus on the decarbonization of the economy is expected to lead to significant changes in global seaborne trade, as coal and oil are phased out and other energy carriers replace them. At the same time, the shipping industry itself works ambitiously to reduce its own carbon footprint. New regulations from the IMO and regional lawmakers, together with initiative from industry stakeholders, drive demand in the maritime industry, as older, less efficient ships have to be replaced, or need additional equipment installed to comply with the new regulations. This is a trend that especially the Danish maritime industry, which is well-known for its innovative technology and high quality, can benefit from, says Jenny Braat, CEO at Danish Maritime and chairman of the group:

“In short, there is going to be a profound transformation of global shipping in the coming years. We are working together towards achieving climate-neutral shipping, which is a monumental task. This is clearly reflected both in the numbers, where 4% globally is significant, and in the resulting activity, research, development, and innovation within the maritime industry. We will be busy, both locally in Denmark and in delivering cutting-edge technology to the rest of the world. I am very pleased with that on behalf of the maritime companies,” says Jenny Braat.

And the decarbonization of shipping is highly necessary, as the report also shows an expectation of further growth in seaborne trade. Recent events such as Russia’s invasion of Ukraine, and the supply chain issues during and after Covid-19 have shown the importance of seaborne trade in a globalized economy, and with further growth in the economy, seaborne trade is expected to grow as well, requiring more shipping capacity. At the same time, the recent crises have exposed weaknesses in many supply chains, leading companies to reevaluate the risk associated with their international operations. Trends such as re-shoring or friend-shoring, meaning the refocusing of operations on geographically closer, or politically more aligned countries, will change trade flows, requiring the future fleet to be adjusted to these requirements.

Facts

The SEA Market Forecast Working Group: The SEA Market Forecast group is a part of SEA Europe, the umbrella organization of maritime industry associations, and has existed since 1969. Its main task is to conduct market forecasts and deliver regular studies on technical issues such as newbuilding requirements, and shipbuilding capacities, aiming to provide industry stakeholders with guidance for long-term planning. Since 2008, Jenny Braat, CEO at Danish Maritime, is chairing the group.

Read the report executive summary here.