On a regional basis there are some interesting trends, with forward cover highest at European yards and at record lows at South Korean yards. This month’s Shipbuilding Focus investigates what factors have been behind these changes and how the situation may develop.

Graph of the week

Regional Peaks And Troughs

Forward cover is one measure of shipbuilders’ future work, calculated here in CGT terms by dividing the current orderbook by the previous year’s output level. While as an indicator it fails to capture changes in shipyard capacity by relying on the previous year’s delivery data and doesn’t account for the impact of slippage and cancellation, it is still a useful measure of the shipbuilding industry’s health. Global forward cover is now at 2.3 years, low but not quite at the 2012 trough of 2.1 years. Korean yards’ forward cover has reached a historical low of 1.5 years, falling by 49% from its last peak in 2014. Meanwhile, Chinese yards’ forward cover has declined by 40% since 2014 and currently stands at 2.4 years. Japanese yards’ forward cover has fluctuated less, declining by 32% since its last peak in 2015 and is currently at 2.6 years. Conversely, European yards’ cover is the highest at a healthy 4.2 years and has increased by 8% in the year to date.

The Whys And Wherefores

Many factors influence forward cover, with recent declines at the ‘big 3’ builder countries largely caused by weak contracting which has depleted yards’ orderbooks. In China and Korea, strong deliveries have further reduced forward cover and the Chinese and Korean orderbooks have decreased by 36% and 44% respectively since start 2016 in CGT terms. The strong level of forward cover in CGT terms at European yards reflects their dominance in the cruise ship sector, with European yards’ orderbook stretching out to 2025. Meanwhile, Japanese shipyards’ relatively more stable contracting and delivery volumes have helped maintain a steady level of forward cover.

Looking To The Future

Needless to say falling levels of forward cover does not bode well for shipbuilders. As of 1st May 2017, there are 369 active shipyards globally (with a 1,000+ GT vessel on order). Of these yards, only 44% are reported to have taken a newbuild order in 2016 or 2017 and 39% are scheduled to deliver all vessels on their orderbook by the end of 2017. Furthermore, only 26% have delivery slots booked further than 2018. If, for example, in 2017 there is the same level of contracting as in 2016, and assuming yards deliver around 33m CGT in full year 2017, we could see global forward cover drop below 2 years by the start of 2018. Even if ordering doubled year-on-year in 2017, global forward cover would simply remain steady at 2.3 years.

So, forward cover is falling for most builder countries as the global orderbook declines. This largely reflects historically weak newbuild contracting as well as relatively steady delivery levels. With forward cover likely to decline further or at best remain steady, the significant pressure on shipyards’ to build up their orderbooks is clear.


Source: clarksons

Naval gazing, what lies ahead for the supply chain Rockford IL

As this blighted year nears its end, three maritime journalists were asked to assess the industry as it enters a critical period in history. Change is afoot and 2021 is likely to herald a new beginning for some, writes Nick Savvides, managing editor at Container News.

Read more ...

10ft Shipping Containers

$5,200.00 each

in stock NOW / Call for Pricing

Curently sold out but you can pre-order below


20ft Shipping Containers

$1.00 per unit for buying at least 6

20' NEW ONE TRIP Scratch And Dent

Several shipping container units in Nashville 20ft and 40ft New High cubes


Damaged make us an offer


Dec 8 2023

$2,495.00 each

Nashville 20' USED WWT off stack

Dry boxes call Danny for details

Please make a $250 deposit to secure these prices

Price is for pickup



$2,950.00 each

20ft Nashville Used Cargo ready Dry A units

Nice Cargo Worthy Dry boxes 4 left today Dec 8,2023 Nashville While supplies last

$3,195.00 per unit for buying at least 2

12.10.23 NEW ONE TRIP 20FT NASHVILLE TAN PRE ORDER ONLY PRICE $3195.00 $250 deposit to reserve



12.10.23 Nashville brand new 20 one trippers on water now

Pre order bulk to get this price min qty order x2





Curently sold out but you can pre-order below


40ft Shipping Containers

$5,900.00 per unit for buying at least 2

40' NEW HIGH CUBE One Trip White (+23 units ava)

December 6 2023 6 left

Price until gone at $5900



$2,999.00 each

PENDING SALE NASHVILLE CALL/ Only today Sale x2 40 HIGH CUBE $2999.00



X2 40 high cubes as is good dry units must order with deposit to secure Nashville shipping container delivery

$4,999.00 per unit for buying at least 2

Only today In Nashville Sale Matching pair x2 40 HIGH CUBE NEW DARK RICH BLUE Color $4999.00



X2 40 high cubes in Nashville brand new super nice bright Interiors white must buy both to get price Sale ends this week. Just buy now by placing a $500 deposit I will call.



$3,590.00 each

Only today SALE Nashville 40ft CARGOWORTY $3590 4x4 deliveries up to 150 mi. Ava



Clean 40STD great for Nashville residential storage $3590 while supplies last

Save over $1000


Call Danny


ONLY 1/SOLD PENDING 12-12-23 New one trip tan Nashville 40 ft High Cube Double Door at both ends



12.10.23 40 high cube shipping container Nashville one trip Double door tan