No Light at End of World Shipbuilders’ Tunnel

Press Release
Friday, November 30, 2012

Drewry Maritime Research’s ‘Annual World Shipbuilding Market Review & Forecast’ highlights bleak prospects for the world’s shipbuilders.


Shipbuilding production levels have remained at record high levels exceeding 50 million cgt for two consecutive years (2010 -2011), with 2012 forecasted to remain close to 2011 levels. However the orderbook that forms the contracted forward workload has diminished rapidly and tails-off to very low levels for 2014 and beyond.


Over-tonnaging and large operating inefficiencies mask the true levels of fleet under-utilisation and are hindering a recovery. With the orderbook dominated by bulk carriers and containerships, two of the worst hit markets in terms of over supply wreaking havoc with rates, it reflects the fact that for some time now ordering activity by shipowners has exceed the requirements of trade growth.  


To give a clear insight into the prospects for the shipbuilding industry Drewry’s Annual World Shipbuilding Market Review and Forecast report presents three scenarios covering the projected newbuilding requirement by sector and ship type over a fifteen year period, reflecting the uncertainty that surrounds the industry.


Only under the High Case scenario is there a requirement for further new ordering beyond the size of orderbook at the start of 2012. Whereas under the more realistic Base Case in virtually all fleet sectors the size of the orderbook at the start of 2012 more than exceeded the newbuilding requirement to 2016.


The immediate prospects for the shipbuilding industry are therefore bleak. Furthermore access to funding – either through retained reserves or debt is very limited for shipowners and in the circumstances it seems almost inevitable that new ordering levels will remain low for some time to come.


Simply the difference between forecast demand and capacity is too great to be bridged by contraction from isolated capacity closure, meaning shipyards will have to fight for survival by securing enough of the limited new ordering that is likely to take place in the next couple of years.


To order the full report click here: http://www.drewry.co.uk/publications/view_publication.php?id=396

 

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

China Shipyards Bag the Week's Ocean-going Newbuild Orders

Reported ordering this week has been exclusively focussed on the Chinese yards, says Clarkson Hellas in their latest 'S&P Weekly Bulletin'. Dry bulk carriers COSCO

Aker Philadelphia Shipyard ASA: Purchase of own shares

Aker Philadelphia Shipyard AKPS), a leading U.S. commercial shipyard constructing vessels for operation in the Jones Act market, has on July 25, 2014 purchased 1,

HMS Prince of Wales Delivery Begins

A huge section of hull for HMS Prince of Wales, the second aircraft carrier being delivered to the Royal Navy, has today departed BAE Systems in Glasgow on a 600-mile

Finance

Diana Containerships Q2 & 1H 2014 Financial Results

Greece-based Diana Containerships Inc., a global shipping company specializing in the ownership of containerships, has reported net income of $0.6 million for the second quarter of 2014,

Mercator Lines Profit Hit by Low Bulk Freight Rate

Mercator Lines (Singapore) reported a revenue of US$ 16.5 million for Q1 2015, an increase of 19% as compared to correspoding period in the previous previous year, however a net loss of US$ 7.

China Shipyards Bag the Week's Ocean-going Newbuild Orders

Reported ordering this week has been exclusively focussed on the Chinese yards, says Clarkson Hellas in their latest 'S&P Weekly Bulletin'. Dry bulk carriers COSCO

News

Total Sells ts Coal Mining Assets to Exxaro

Total has signed an agreement with Exxaro Resources Ltd for the sale of its 100% stake in Total Coal South Africa (TCSA), its coal-producing affiliate in South Africa.

Crew of USCG Cutter Thetis to Return today

The crew of the Coast Guard Cutter Thetis, a 270-foot medium endurance cutter based out of Key West, Florida, is scheduled to return to homeport Tuesday at 11:45 a.

Control of Emission from Vessels in Hong Kong Waters

Amendments to the Shipping and Port Control Ordinance (Cap. 313) and the Merchant Shipping (Local Vessels) Ordinance (Cap. 548) to enhance the control of dark

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1428 sec (7 req/sec)