Norwegian owners order more ships as lay-ups decline

New ship orders are running at record levels and lay-ups are down. The report comes ahead of what is billed to be a record-breaking Nor-Shipping in June

Norwegian shipowners, who own and operate the world’s fourth largest fleet by value, have 215 ships and rigs on order over the next five years, the highest level since contracting records began in 2018, according to most recent statistics from the Norwegian Shipowners’ Association (NSA). The offshore wind sector has underpinned much of the growth.

The spate of new contracts placed by the country’s owners come as inactive vessels fall to an all-time low, the NSA’s Gabrielle Legrand Gjerdset, Director Politics and Analyses.NSA members are generally positive about the future, she told journalists yesterday, despite troubled geopolitics, climbing interest rates, and increasing concern over protectionism.

Despite these challenges, Norwegian owners are still aiming to have zero-emission vessels on the water by 2030 and for the fleet as a whole to become carbon neutral by 2050, Gjerdset said. Companies are willing to pay more for green fuels and are preparing to pay more for fuels of the future. However, owners are seeking policies to scale up the green transition, with initiatives including contracts for difference, green funding, and higher taxes on greenhouse gas emissions.

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Security concerns are increasingly evident, however, leading to the recent establishment of the Norwegian Shipping Security and Resilience Centre, established to tackle digital threats and challenges. The war in Ukraine has exerted enormous pressure on the European energy market and increased demand for Norwegian gas. It has also resulted in higher costs, more complex crew changes, and supply chain complications.

A reduced level of recycling is expected this year, with only five Norwegian ships likely to be demolished. This is a result of increased activity and demand for tonnage, the NSA said.

Nor-Shipping director, Sidsel Norvik, reveals that offshore wind will be a key feature of this year’s event which, she expects, will set new records. Exhibitors are set to exceed one thousand for the first time, she said, beating the 2013 record of 988. More than 50,000 visitors are expected to attend, another record, and all of this just eight months after the last event, postponed from 2021 as a result of the pandemic.