South Korean Shipbuilders' Order Book Shrinks
South Korean shipbuilding orders drop 58.6 percent through September 2012. South Korean shipbuilding orders dropped 58.6 percent for the first nine months of this year due to the persistent recession in the global shipbuilding industry, a government report reveals. The drop was attributed to the recession in the global shipbuilding industry. Global shipbuilding orders declined 48 percent to 14.34 CGT over the cited period due to an oversupply of ships and the prolonged global eaconomic slowdown, the report adds that demand for container ships and bulk carriers contracted sharply, informs Xinhua. Despite the global slump, South Korea kept its position as the world's No.1 shipbuilding country with the market share of 36.3 percent.
Korean Ship Orders Drop 34%
New orders received by South Korean shipbuilders dropped 34.1 percent in the first seven months of this year versus the same period last year, provisional figures from the Korea Shipbuilders' Assoc. claim. Orders in the seven-month period reached 3.84 million gross tons (GT) for 80 ships, compared with 5.82 million GT for 103 ships in the same period a year earlier.
Chinese Shipyard Orders Plummet 47% in 2011
Chinese shipbuilding orders fell last year as global economic growth slowed, Xinhua News Agency reported, citing data from the National Development and Reform Commission. New orders dropped 47 percent to 33.69 million deadweight tonnes from January to November, Xinhua said.
JAPANESE FOREIGN SHIP ORDERS DROP 39%
Japanese shipyards received foreign orders for 21 vessels totaling 581,100 GRT in July, down 39.6 percent from a year before, the Japan Ship Exporters' Association said. In all, 19 orders were for bulk carriers and two for freighters.
South Korean Shipbuilding Orders Drop
New orders received by South Korean shipbuilders dropped 6.7 percent in the first 10 months of this year from a year ago, provisional figures from the Korea Shipbuilders' Association showed. Orders in the 10-month period totaled 7.98 million gt for 145 ships, compared with 8.56 million gt for 145 ships in the same period a year earlier, the association said. New orders received in October this year totaled 2.18 million gt for 35 vessels, it said. Ships completed in the January-October period amounted to 7.96 million gt for 140 ships this year, up from 6.36 million gt for 127 ships in the same period a year before, the association said. South Korea's backlogged orders at the end of October totaled 21.18 million gt for 336 ships, it said.
South Korean Foreign Ship Orders Drop
New foreign orders received by South Korean shipbuilders fell 15.7 percent in the first nine months of this year from a year ago, provisional figures from the Korea Shipbuilders' Association show. Orders in the nine-month period totaled 5.8 million gt for 110 ships, compared with 6.9 million gt for 121 ships in the same period a year earlier. New orders received in September alone totaled 1.2 million gt for 16 vessels. It did not give comparable 1998 figures. Backlogged orders at South Korean shipbuilders stood at 19.4 million gt for 310 ships at the end of September versus 19.4 million gt for 309 vessels a year earlier, the association said.
South Korean Shipyards Aim More Orders
South Korean shipyards have sharply raised their order targets for next year on expectations that the shipbuilding sector will improve, Yonhap reported. The country's three major shipyards - Samsung Heavy Industries (SHI), Daewoo Shipbuilding & Marine Engineering (DSME), and Hyundai Heavy Industries (HHI) - are looking at improving business conditions on the back of a recovery in the global economy and stable oil prices. The report quoted industry sources saying that HHI is targeting US$13.2 billion worth of new orders next year, up 76 percent from this year's $7.5 billion.
The New Age Of Containerization
While the 1970s could be called the decade of the tanker, and the 1980s that of the bulk carrier, without a doubt the 1990s will be most widely recognized in maritime circles as that of the containership. Explosive fleet growth — from 1.768 million TEU in 1990 to more than five million TEU estimated by 2001 (source: Clarkson Research Studies) -— coupled with corporate consolidations has conspired to create operational and cost efficiencies that promise to drive the industry for the next decade as well. Until the early 1990s, fixtures in the containership market were not even equal to that of the Handymax bulker segment. In 1980, the entire fleet was comprised of 750 ships, versus the 1,800 recorded by the end of 1995.
Japan Shipbuilding Orders Drop
Japanese export ship orders fell 8.5 percent in June from a year earlier, reveal figures by the Japan Ship Exporters’ Association (JSEA). Japanese export ship orders fell 8.5 percent in June from a year earlier to 499,370 gross tons, according to figures released by the Japan Ship Exporters’ Association (JSEA). The 8.5 percent decline in June was the third straight monthly drop year on year and was significantly slower than the 43.5 percent drop in April and 44.6 percent in May, reports 'Malaya Business Insight'. Industry watchers attribute the decline to shrinking demand for new vessels from shipowners, coupled with growing competition from shipyards in South Korea and China.
Report: HHI Leads Drop in Shipbuilding Stocks
According to reports, Hyundai Heavy Industries Co., led declines among shipyard stocks on concern of fewer orders for vessels this year after bulk rates fell the most since June 1989. Hyundai Heavy dropped 6.6 percent, the biggest decline in almost five months, to close at 382,500 won. Unit Hyundai Mipo Dockyard Co. declined 6.5 percent, the largest loss in two months, to 244,000 won. Bulk rates plunged last week on concern economic slowdowns in China, the world's biggest buyer of iron ore used to make steel, and the U.S. may reduce trade demand for commodities and consumer goods. Demand from China, Asia's second-largest economy, last year helped lift fees to a record, prompting vessel orders. Shipping lines including STX Pan Ocean Co. and Pacific Basin Shipping Ltd.
Rhine in Germany Reopens as Water Levels Recede
The river Rhine in Germany was reopened to shipping on Wednesday after a fall in water levels, the German inland navigation authority said. The river was closed to inland shipping at the beginning of the week after rain and melting snow raised water levels. High water means vessels do not have enough space to sail under bridges, but drier weather means water levels have dropped enough to enable navigation to resume, an official said. The Rhine is an important shipping route for commodities including minerals, coal and oil products such as heating oil, grains and animal feed.
Shipbuilding – China Stuggles to Keep Pace with Korean Yards
South Korean yards took market share from Chinese yards in 2011 according to a recent report in the Danish Ship Finance Review. South Korea secured new orders of 13.5 million cgt Korean yards secured almost half of the contracted capacity (13.5 million cgt). Container and Tanker orders accounted for 85% (6 million cgt and 5 million cgt respectively). South Korea therefore maintains the position as the leading global builder of Containers and Tankers. But South Korean yards also added to their market position in the specialized tonnages. For example, orders of 1 million cgt were placed for Drillships in 2011. European owners signed 60% of the orders placed in South Korea during 2011. The order cover dropped on average 14% to 28 months in 2011.
Hyundai Heavy Leads Shipyard Decline on Prices
Hyundai Heavy Industries Co., led a decline in South Korean shipyard stocks in Seoul trading on concern prices for new vessels may drop. Hyundai Heavy fell 5.8 percent, the biggest decline in more than a week, to close at 319,500 won in Seoul. Hyundai Mipo Dockyard Co., a unit of Hyundai Heavy, fell 7.1 percent to 201,500 won. The shares also dropped after UBS AG said orders may slow this year from the record sales in 2007. The price for second-hand bulk carriers was as much as 61 percent more than for new vessels last year because of increased demand for iron ore and coal from China and India. Shipyards in South Korea, the world's biggest shipbuilding nation, increased their order backlog last year, even with ship prices at records.
Korean Shipbuilders' Orders Halved
According to a 'Yonhap News Agency' report, the country's three biggest shipbuilders -- Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. -- clinched orders worth a combined US$17.3 billion during the January-June 2012 period, down 50.8 percent from a year earlier. Hyundai Heavy Industries, last year's market leader, secured a mere $4.93 billion in orders over the six-month period, while Samsung Heavy landed shipbuilding deals worth $6.5 billion and Daewoo Shipbuilding won $5.87 billion worth of contracts. The sharp decline in orders is mainly attributable to weakened demand in Europe, hit hard by severe debt problems.
Ship Building Supply Glut Bites China's Shipyards
Chinese shipyards register a 49% plunge in first half 2012 orders. 'Gulf News' informs that China has 1,536 shipyards with annual sales of more than five million yuan ($780,000), according to the China Association of the National Shipbuilding Industry. Shipbuilding and shipping capacity surged because of speculation fuelled by China’s demand for raw materials. The government also provided low-cost financing for new vessels to help support shipyards. That combination contributed to a global surge in orders from about 2007, including for dry-bulk ships, used to haul iron ore and coal. These vessels and cooling demand are now hammering charter rates. The benchmark Baltic Dry Index has dropped 26 per cent in the past year to 958 yesterday. It reached a high of 11,793 in May 2008.
Chinese Shipyards Bankrupted by Sluggish Demand
According to 'China Daily' Zhejiang Jingang Shipbuilding Co Ltd, headquartered in the Taizhou city of East China's Zhejiang province, recently filed a bankruptcy petition to the Taizhou Municipal Intermediate People's Court due to its significant loans and lack of new orders. Most banks regard the export-led shipbuilding industry as "high risk", refusing to underwrite or extend loans to related companies. The Jingang shipyard is only one among many similar Zhejiang-based shipyards that have suspended business and dismissed employees due to the difficult market conditions. In June, Ningbo Hengfu Shipping Trade (Group) Co Ltd and Ningbo Beilun Sky Shipbuilding Co Ltd both filed motions to sell off assets.
Schat-Harding New Freefall Lifeboat
Lifeboat and davit manufacturer, Schat-Harding, has completed the first freefall drop with its new design of lifeboat for the offshore sector, the FF1200. Schat-Harding CEO Ove Roessland said, “We were acutely aware that, in order to satisfy regulations applying to the Norwegian offshore sector, it was necessary to design a completely new lifeboat. Now, after several years of research and development, and the successful completion of high-scale module testing, we have produced what we regard as the safest lifeboat ever developed by Schat-Harding.
Westports Records Throughput of 9m TEUs
Malaysian port operator Westports Holdings Berhad recorded FY17 container throughput of 9m TEUs which declined 10% YoY, in-line with our expectation of a poorer throughput outlook for the year. The decline was mainly due to drop in transhipment, while cushioned by strong growth in the gateway. Meanwhile, full compliance of MFRS 15 effective FY18 should be earnings-neutral. No changes made to our FY17-18E earnings forecasts. Maintain MARKET PERFORM and DDM-derived TP of RM3.70. Westports announced an update on its full-year FY17 container throughput, reporting in at 9m TEUs.
Capesize Rates Post Biggest Weekly Drop in 2 Years
The Baltic Exchange's main sea freight index fell on Friday and continued to linger around five month lows as the capesize segment recorded its biggest weekly percentage decline in two years. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels that ferry dry bulk commodities, shed 14 points, or 1.23 percent, to 1,125 points, the lowest since Aug. 10, 2017. For the week, the index ended 12 percent lower. The capesize index fell 118 points, or 7.32 percent, to 1,493 points, its lowest since Aug.
China Shipbuilding Industry 2012 Profits Sink
China's shipyards launched 60-million dwt in 2012 representing a drop of 21% from the previous year. According to Ministry of Industry and Information Technology government statistics reported by CNTV, new orders for shipbuilding also tumbled by about 44 percent. Industry experts consider that the shipbuilding industry would continue to be weak in 2013, and it’s unlikely the market will pick up in the short term. Three listed shipbuilding companies have already released profit warnings for 2012. Sainty marine for example is expected to see its net profit slump by as much as over 50 percent. Meanwhile, the China State Shipbuilding Corporation forecasts a 100 percent drop in its bottom line. Source: CNTV
Recovery for European Shipowners?
European Shipowners may increase freight rates or renegotiate bunker clauses in the coming year in order to capitalise on lower crude oil prices and consolidate the recovery seen in 2015, reports ICIS. Bunker fuel prices came down significantly amid lower crude oil prices but some shipowners have been unable to take advantage of this because of the bunker clauses they agreed to. A bunker clause is an agreement between charterer and shipowner whereby the charterer pays for fuel at the port and then the shipowner reimburses the charterer for the fuel left in the vessel on its return…
Samsung Heavy Industries to Raise $985 mln via Rights Issue
South Korean shipbuilder Samsung Heavy Industries Co Ltd said on Friday its board of directors have approved a plan to raise about 1.1 trillion won ($985.22 million) via a rights issue. Samsung Heavy, part of the Samsung Group conglomerate, has been planning a rights issue to weather a drop in orders for new vessels at South Korea's three largest shipbuilders, while the country expects a 20 percent drop in major shipbuilders' capacity by 2018 from 2015. Separately, a person with direct knowledge of the matter told Reuters that Samsung Electronics Co Ltd Vice Chairman Jay Y. Lee - the de facto head of Samsung Group - does not plan to buy any of the new Samsung Heavy shares. A Samsung Group spokeswoman declined to comment. Reporting by Joyce Lee and Se Young Lee
Keppel's Profit Nosedives
Keppel Corp., the world’s largest builder of oil rigs, posted a 41 per cent fall in quarterly profit, its fourth straight decline, as offshore and marine segment revenue slumped because of the deferment of some projects and suspension of contracts related to Sete Brasil. The Singapore conglomerate has been hit by the 60 per cent drop in oil prices since mid-2014. Its businesses include property development and infrastructure. Net income dropped to S$211 million ($156 million) from S$360 million a year earlier, Keppel said in a statement Monday.