News: “Happy” New Year?

Wednesday, January 14, 2004

Little more than 12 months ago newbuilding prices had been drifting down steadily for more than a year and some industry analysts were warning that soft ship prices could be here for some time. Simultaneously, the closure of some yards were more than offset by the opening of new ones, particularly in China, while improvements in productivity were constantly adding capacity.

Some brokers and industry analysts were warning of surplus capacity, not just in containerships, but in the Aframax, Suezmax and 45,000 dwt products carrier range.

What a difference a year makes.

Today the picture is radically different. The container, tanker and bulk carrier markets are all buzzing, with certain sectors of the dry bulk market reaching record levels, beyond most owners' wildest dreams. The world's shipyards are full, almost without exception, for the next three years and some builders are now taking orders for 2007 delivery. New ship prices are rising dramatically (see table) and the markets are so buoyant that there are few re-sales available. Secondhand vessel values are spiralling, with some buyers prepared to offer over the odds just to secure the tonnage they want.

There are significant new ship price rises in both the dry and liquid sectors. But it is the increase in the cost of Capesize units that is the most dramatic. Fuelled largely by Chinese demand for iron ore and coal, Capesize charter rates have climbed to unprecedented levels, pushing up both new and secondhand prices too. Newbuilding brokers believe it is only a matter of time before the price tag for a new Capesize will start with an almost incredible five. However, shipbuilders may not have it all their own way. Iron ore prices are climbing, which could soon manifest into rising steel prices.

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Newport News Shipbuilding Hosts Sen. Inhofe

Huntington Ingalls Industries (HII) today hosted Sen. James M. Inhofe, R-Okla., for a tour of the company's Newport News Shipbuilding division.   The senator,

Hempel CEO Jullien Plans Retirement

Pierre-Yves Jullien, CEO of Hempel A/S since 2005, has decided to retire after nearly 40 years in the Group. He will step down from his role as CEO on March 31, 2016 at the latest.

DNV GL Launches Singapore Service Center

DNV GL's new Singapore Service Center (SSC) will streamline customer support and enhance customers’ experiences by giving them a single point of contact for all operational issues.

Shipbuilding

Vigor’s Tacoma Yard Delivers Breasting Barges to Foss

Vigor Industrial expands its newbuild capacity in Washington; Tacoma yard delivers three breasting barges   Fabrication teams at Vigor Industrial’s Tacoma, Wash.

New Milling Disc from IN.MOTION

IN.MOTION Technology Distribution, LLC, announced the launch of a new milling disc designed for fast, efficient beveling, weld preparation and weld repair. According to the manufacturer,

Newport News Shipbuilding Hosts Sen. Inhofe

Huntington Ingalls Industries (HII) today hosted Sen. James M. Inhofe, R-Okla., for a tour of the company's Newport News Shipbuilding division.   The senator,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Salvage Ship Electronics Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1592 sec (6 req/sec)