Monday, August 22, 2011

Japan sinks with strong yen

Due to ultra-strong yen, Japanese shipbuilders' newbuilding order is now in a sharp decrease.

Japan Ship Exporter's Association reported newbuilding order for export in July at 484,020gt decreased by 58.2% from the same period last year.

Since Lehman Shock in 2008, Japan has kept losing newbuilding order to China with bulkers and South Korea with LNG carrier, etc.

JSEA said, "As China expand its shipbuilding capacity, bulker delivery exceeds scrapping."

In 2010, bulkers led Japan's shipbuilding market, by taking 92.6% of total newbuilding order.

Also, in terms of LNG carriers, majority sees Japan cannot beat Korea.

Even though some shipowners are interested in Japan's recently upgraded-energy efficient ships, having $1=JPY 90 a breaking point, Japan would be less competitive when there is 1-2% of difference between initial shipbuilding price in Yen and dollar converted price.

Newbuilding orderbook of Japan has continuously been dropped to 891 vessels, as of the end of July, down by 132 ships from the same period last year and decreased by 60% from the same period 2008, when recorded 1,421 vessels.

Most Japan's shipbuilders are finding ways to make shipbuilding plans after 2013, like slowing down production, etc, under a situation of workload deficiency.

Also, now consolidation between Universal Shipbuilding and IHI Marine United is under discussion and further corporate integrations are expected.

Published : August 22, 2011


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