China is at the forefront of the escalating costs in floating production, storage and offloading vessel fabrication anticipated through 2024 and 2025, propelled by surging labour and material rates.

Analysis by Rystad Energy indicates that hull construction costs at Chinese shipyards are projected to increase by 3.15% from 2024 to 2025.

This upward trajectory can be attributed to higher wages resulting from the labour-intensive nature of hull construction coupled with increased manufacturing overheads and escalating base metal prices.