$30.9b New Vessels Built in 2016

• $30.9b New Vessels Built in 2016

The global maritime sector recorded the lowest new ship building contracts in 2016, with total investment value put at $30.9 billion. Latest report released by an international Maritime research firm, Clarkson, indicated that such weak volume sector markets and a depressed offshore sector had outweighed positivity in some of the niche sectors, as 50 per cent of the value of new build investment last year was in cruise ships.

This is coming as the Cruise Lines International Association (CLIA) declared that the cruise industry would introduce a total of 97 new cruise ships from 2017-2026 totalling an estimated investment of $53 billion.

According to Clarkson: “The investment side has seen the temperature drop even further. New building contracts have numbered just 419 in the first eleven months of 2016, heading for the lowest annual total in over 30 years, and new build investment value has totalled just $30.9 billion.”

CLIA, in its 2017 State of the Cruise Industry Outlook, said this year alone, cruise lines are scheduled to debut 26 new ocean, river and specialty ships for a total investment of more than $6.8 billion in new vessels.

The growth of cruise travel industry is expected to continue throughout 2017, with an estimated 25.3 million passengers expected to sail in 2017, a strong surge from 15.8 million recorded in 2007.

President and Chief Executive Officer, CLIA, Cindy D’Aoust, said: “The cruise industry is responding to global demand and we are highly encouraged by both the short-term and long-term outlook.

“From technological advancements and deployment of new ships to new ports and destinations around the world, the industry continues to respond to desires of today’s travelers resulting in steady growth and strong economic impact around the world,” he stated.

According to the group, cruise industry expenditures generated $17 billion in total output worldwide, supporting 956,597 full-time equivalent employees who earned $38 billion in income in 2015.