Ship Repair Demand Surges Amid Fleet Ageing
Global ship repair activity has seen a significant increase of 7% this year, outpacing the growth of the overall fleet, according to recent data from Clarksons Research. This surge is largely attributed to an ageing fleet reaching critical survey milestones and shipowners racing to implement energy-saving technologies (ESTs) to comply with stricter decarbonisation targets. The demand for repair services is expected to rise further as more vessels become due for extensive surveys.
Decarbonisation Drives Repair Activity
The ship repair industry is experiencing a notable uptick in activity, driven by the 15-year anniversary of the 2009-10 shipbuilding boom. Many vessels are now due for their third, fourth, or even fifth special surveys, creating a robust demand for repair slots across the globe. While the intense activity surrounding scrubber retrofits that overwhelmed shipyards in 2019 and 2020 has subsided, a steady stream of decarbonisation projects is now emerging. So far this year, over 540 vessels have undergone EST retrofits, and initial projects for carbon capture systems and fuel conversions are beginning to take shape.
China has solidified its dominance in the ship repair market, boasting 17 of the world’s 20 busiest repair yards. This concentration of capacity has positioned China as the leading player in the sector. However, as yard capacity tightens and off-hire days increase, brokers are cautioning that shipowners may soon face escalating repair costs and longer wait times for docking slots. The combination of an ageing fleet and the push for greener technologies is reshaping the landscape of ship repairs, making it a critical area of focus for the maritime industry.
