Japan Shipyard Orders Continue Decline
In December 2014, orders of Japan yard fell 37% year on year, says Japan Ship Exporters’ Association (JSEA). Japanese shipyards specialize in building dry bulk carriers.
JSEA member yards secured 24 export orders totaling 1,215,100gt in December 2014 which was down from 44 export orders compared to the previous year.
In December, the orders showed an improvement from November 2014 when JSEA members received 10 orders totaling 338,750gt. The orders include one general cargo ship, seven Handy size bulkers, six Handymax bulkers, three Panamax bulkers, one Capesize bulker, one chip carrier, one products tanker and four LNG carriers.
Due to a tonnage overhang for Panamaxes there was a downward pressure on dry bulk freight rates. Indonesia's ban on raw ore exports, and a lack of Brazilian iron ore cargoes, is discouraging investment appetite for bulkers.