Credit Crunch Spreads to Shipyards
There are growing signs the credit crunch that began with the housing market is spreading to the world's shipyards, Reuters reported. The global economy saw shipbuilders inundated in recent years by orders for container ships, oil tankers and bulk carriers to satisfy American and European demand for consumer goods, a global thirst for oil and a Chinese hunger for commodities. Order books swelled to a three-year backlog, but the credit crunch is making it harder for some shippers to raise money to pay for the ships they ordered. In late February an executive at Dalian Shipbuilding Industry Ltd, 's No. 1 shipyard, warned of slowing orders for new ships, citing fears a slowdown could damp global trade. Shares of shipyards have suffered.
China Shipping Devt To Buy Eight Oil Tankers
Hong Kong-listed China Shipping Development Co. agreed to buy eight oil tankers for $556m from two Chinese shipbuilders. According to Yahoo! News, China Shipping Development, a unit of state-owned China Shipping (Group) Co., said it would buy four oil tankers for $408m from Dalian Shipbuilding Industry Ltd. It said the four vessels would enter operations between June and December 2009. China Shipping Development also said it would buy four oil tankers for $148m from Guangzhou Shipyard International Ltd. The first of these vessels will enter operations October 2007, while the last would be delivered in November 2009.The company said it would finance the purchases through bank borrowing and internal resources. (Source: Yahoo! News)
