Clarkson: The index set a new record in 2022

Clarkson’s ClarkSea index, a shipping brokerage company, covers about 80% of the world’s fleet capacity. The index soared by nearly one third in 2022, reaching a record level.

The rise of the index was mainly due to the support of the container shipping sector. In addition, automobile ships, oil tankers and LNG carriers also performed well. In 2022, energy shipping increased by about 4%, which became one of the main factors driving the ClarkSea index to reach a record $37253/day.

In 2022, the average revenue of oil tankers increased by more than 470%, and VLCC increased by 642% year on year, both setting new records. Medium-sized product tankers also performed well. The freight rate of 12-year-old medium product tankers increased by 370%, from $6740/day in 2021 to an average of $31775/day last year.

In contrast, container freight rates experienced a “significant adjustment” in the second half of 2022, lower than the record level at the beginning of the year. Clarkson pointed out that the increase of container ship delivery will bring pressure on freight rates. However, from a historical perspective, the consolidation market is still strong, and the optimization of China’s epidemic prevention measures will have a positive impact on container trade.

Clarkson believes that in 2022, the revenue of some ship types set new records, accounting for only 10% of the total fleet capacity in terms of order volume, which is still at a low level in history. And the future transport capacity will be limited by the new emission regulations, such as the EEXI and CII regulations implemented on January 1, 2023 and the EU emission trading system launched next year.

In the new year, the shipping market still faces many uncertainties. Clarkson revealed that a new speed index would be established to monitor the impact of ship deceleration. Other uncertainties include the scale of energy-saving equipment renovation, potential fleet renewal and the differentiation of the chartering market.