Q2 ship orders lowest this decade

Q2 ship orders lowest this decade

The remarkably turbulent confluence of jittery shipping markets, tense geopolitics, encroaching environmental regulations and a slowing global economy saw recorded ship orders fall to their lowest level this decade in the second quarter according to data from VesselsValue.

The quarterly low was for both the number of units ordered as well as their combined value.

Looking at the first half orders, Olivia Watkins, an analyst at VesselsValue noted the total number of bulker newbuild orders is down 73% compared to the same period in 2018 while tankers have dropped 47% year-on-year and boxship orders are down 49% and LNG carriers dropped by 39%. LPG carriers saw a similar decline to bulkers, down 73% in the first six months.

“Rising steel plate price and uncertainty about IMO 2020 has led to the lowest number of orders placed since 2011 across the shipping sector. New extras which are expensive to fit, such as scrubbers, remain unproven in the market and have caused scepticism,” Watkins told Splash today.

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.

Related Posts