AsianFin — The global shipbuilding market continues to slump in 2024, with new data from China Shipbuilding News showing that only 71 new vessels were ordered worldwide in May, totaling 1.66 million compensated gross tons (CGT)—a 55% drop year-on-year.

This marks the fifth consecutive month of annual declines, each exceeding 50%.

Industry analysts attribute the slowdown to a natural market correction following a multi-year boom.

According to Allied Shipbroking, a Greek shipbroker, new ship orders in the first four months of 2024 have already fallen to their lowest level in four years.

Chen Jun, Vice Chairman of the Shanghai Society of Naval Architects and Marine Engineers, told Jiemian News that last year’s newbuilding orders peaked globally, and a downward cycle began this year.

Data from Clarksons Research shows that 2023 set a 17-year high, with 2,390 new vessels ordered worldwide, totaling 65.55 million CGT.

That surge followed three consecutive years of robust market demand, which now appears to be cooling sharply amid changing macroeconomic conditions and tighter financing.