Shipyards have failed to keep up with rapidly rising steel prices, which is likely to see newbuild prices jump in the coming months, experts tell Splash Extra.
The May issue of the subscription title looks at how newbuild price developments have lagged steel plate increases in 2021 and assesses the likely impact of higher prices for new ships, and by extension for secondhand tonnage.
“At the moment the yards are unable to make realistic budgets and with steel prices sky high, they risk being left at below breakeven levels after the delivery of the ship and we have heard of some projects being put on hold until the situation has settled,” commented Rebecca Galanopoulos Jones, head of research at Alibra Shipping.
Elsewhere in the issue there’s regular market commentary on the three main sectors – all written through the prism of last week’s landmark net zero report from the International Energy Agency, while this month’s in-depth feature looks at Africa as this decade’s potentially fastest growing maritime continent.
Priced for as little as $200 a year, Splash Extra serves as a concise monthly snapshot, ensuring readers are on top of where the shipping markets are headed.
For more details on Splash Extra subscriptions, click here.