Shipbuilding Activity Mirrors Global Economic Condition

Volatility, expensive and limited finance and challenging trading conditions permeate many shipping industry sectors & is mirrored in shipbuilding.

Nevertheless, there has been enough of a steady stream of dealflow for the mid‐sized shipyards to maintain a level of activity in the market – although buyers price expectations remain challenging for shipyards to accommodate, according to the latest Clarkson Hellas Weekly Bulletin on the shipbuilding market.

For the larger capacity shipyards in both China and Korea, where facilities and production are optimised for larger sized conventional tonnage, 2012 has proved a very challenging year to date.

With no immediate signs of recovery in terms of Large Crude markets and speculative LNG demand, coupled with an increased pressure on newbuilding prices for these sectors stemming from competitively priced, old design resale opportunities coming into the market from over exposed owners and problem contracts, the conventional segment of the market for the larger asset classes is certainly under pressure – and with the major yards continually looking to leverage business from these sectors, it is likely that the final quarter of 2012 will not buck the trend that the year seems to have followed to date.

 In terms of reported business, both from China, Norwegian Buyers, Global Car Carriers have signed contracts for 6 units of 6,700ceu PCTC’s at Jinling Shipyard, due for delivery in 2014.

Montana Shipping are reported to have ordered 6 x 8,500 DWT MPP vessels at Jiangzhou Union Shipbuilding for delivery in 2014 and 2015.