Thursday, March 29, 2012

Yards Crisis Deepens

With global orderbook cut by 30% for the last year and newbuilding price continued decreasing for nine consecutive months, small-and-medium shipbuilders wround the world have confronted a serious management crisis.

According to Clarksons and industry sources on March 28, global newbuilding orderbook in early March stood at 349.4m dwt, declined by 7% from 375.8m dwt in the beginning of 2012.

Comparing with 499.1m dwt from the beginning 2011, orderbook has plummeted by about 30%.

Particularly, 158.8m dwt, which accounts for 45% of current orderbook, is scheduled for delivery by the end of this year. Therefore, global shipbuilders are urgently needed to secure orders.

Meanwhile, newbuilding price has been declining persistently. As of March 26, Clarkson newbuilding price index recorded 135p, down by 1p week-on-week and by 1.3p on the end of February. This almost makes certain that newbuilding price is on a downward trend for nine consecutive months.

Large-sized shipyards are going through new order drought in commercial ship sector by winning high-value vessel and offshore plants.

However, considerable number of small-and-medium yards are expected to run out of work this year. Moreover, management environment is getting worse to make profits from new orders.

Published : March 29, 2012

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