As the Covid-19 outbreak escalates globally, this briefing provides an initial assessment of shipbuilding activity, newbuild order potential, ship repair, S&P and demolition and its impact from Covid-19. Developments are fast moving; the aim is to provide a framework to update as data points and intelligence become available. Steve Gordon, Managing Director of Clarksons Research, commented:
“It is becoming clearer that shipbuilding activity will be significantly impacted by Covid-19 disruption. While Chinese shipyards are gradually, and in some cases quickly, resuming production, the potential for delay and slippage at yards globally may now be driven by other factors: difficulties in arranging delivery crew, shortages of key marine equipment and financial pressure on owners. While an order pick up towards the end of the year is possible, newbuild order potential, after falling 30% in 2019, is now considered materially lower for the first half of 2020 at least, with operational challenges for owners to visit yards and increasingly weak sentiment around any strategic transactions in the current economic environment (also “amplifying” earlier technology risk concerns). We are also tracking reduced activity at ship repair yards and operational challenges, often crew related, around S&P and demolition. Our very best wishes in coping with Covid-19.”
