Shipyards are expected to recovery by the end of 2013.
Analyst Yum Dong-Eun of HMC Investment & Securities said "In line with weak shipping indexes, low newbuilding prices maintains in 2012."
Newbuilding price of very large crude oil carrier is around $95m, marking the lowest in the last three years, and newbuilding suezmaxes are costing about $57.5m.
He explained that many shipyards offer lower prices amid new order drought this year.
Yum forecasted "There still are uncertainties surrounding budget deficit of the US, China's investment in infrastructure, etc., until the first half of next year. Improvement of shipbuilding market is expected in late 2013 at the earliest."
Published : October 31, 2012