Tuesday, June 14, 2011

Newbuilding orders dwindle

Shipowners’ appetite for newbuildings seems to have abated, while older vessels are finding their way to scrap yards in Asia on a faster pace. This means that in the future the current tonnage oversupply problems could be alleviated.

According to the latest weekly report from shipbroker Golden Destiny, “in the newbuilding market, the week closed with limited fresh activity posting a 72% week-on-week decline as only 20 units reported to have been placed, after last week’s record activity of 72 new transactions.

After almost three weeks, no contracting activity has been witnessed again in the bulk carrier segment that seems comforting for the industry, taken into consideration the ongoing scheduled deliveries till the end of 2012.

The total invested capital estimated to be around $4.4bn, 4 newbuilding transactions reported with no revealed contract price, with offshore segment grasping 75% of the investment value.

The floating storage booked by Shell for delivery within 2016 is the world’s largest floating gas production and storage vessel and one of the highest capital intensive investments. Thus, in terms of invested capital, the most overweight sector appears to be the offshore, while containers have won the largest share (45%) of this week’s newbuilding activity.

At a similar week in 2010, the newbuilding activity was up by 55% than current levels with 31 new contracts to had been reported worldwide and bulk carriers winning 80% share of the total volume of reported contracts” said the report.

Published : June 14, 2011

Source: Asiasis


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