Shipyards

Newbuild orders hit 35-year low in 2016

In Clarksons Research’s just published 200-page biannual shipping market report, the London-based outfit paints a grim picture of the markets.

Of note, Clarksons shows how newbuild ordering has slowed to a trickle, with just 296 orders of 12.3m dwt reported in the first eight months of the year, the lowest level of orders for at least 35 years. Ordering in nearly all the sectors is down, with only 83 yards securing orders so far this year (vessels 1,000+ GT), compared to 344 in 2013.

“Further consolidation and reductions in shipbuilding capacity are likely,” Clarksons suggested.

Analysts at the British company said that for the shipping markets as a whole, “further re-calibration of supply and improvements on the demand side appear necessary before a more balanced market can be achieved”.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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