Shipowners risk USD 100 billion of stranded assets by 2030 due to energy transition away from shipping fossil fuels.

[The full report pdf](https://www.kuehne-stiftung.org/fileadmin/user_upload/Fossil_fuel_carrying_ships_and_the_risk_of_stranded_assets.pdf) says

“The total value of existing and ordered fossil fuel carrier fleet is around USD 875 billion in 2023. Bulk carriers lead at USD 336 billion, followed by oil tankers at USD 286 billion, with LNG and LPG tankers at USD 186 billion and USD 67 billion, respectively. Profit projections until 2050 ignoring demand-side risks reach USD 1.2 trillion, with bulk carriers contributing USD 490 billion (if the share of coal in bulk remains constant in the future, that would mean 83 billion for coal shipping only), oil tankers USD 234 billion, and liquefied gas tankers USD 446 billion. The orderbook for LNG and LPG tankers is extensive, with over half their fleet value represented by new or upcoming ships from the 2021-2030 generation.”

“The oversupply of oil and liquefied gas tankers poses risks, with potential lost profits of around USD 215 billion by 2050 in the 1.5°C trajectory scenario and in the absence
of repurposing, representing 32% of expected profits, if no further ships are built. This rises to USD 286 billion if newbuilding continues until 2030. The results further suggest that early scrapping might mitigate losses. In the “no further ordering” scenario, the value of the idle ships could peak at USD 90 to 108 billion by 2030 (25 to 30% of the tankers’ fleet value), increasing to USD 121 to 147 billion with further ordering (27 to 33%).”