The world’s shipbuilders are facing bleak prospects in the next couple of years as a result of the slump in the shipping market, and they will have to fight each other for the few orders trickling in, according to Drewry Maritime Research’s latest Annual World Shipbuilding Market Review and Forecast.
Although shipbuilding production has remained at record high levels—exceeding 50 million compensated gross tonnage from 2010 to 2011, and 2012 forecast to remain close to 2011 levels—the orderbook for contracted forward workload has diminished rapidly and tails off to very low levels for 2014 and beyond.
Over-tonnaging and large operating inefficiencies mask the true levels of fleet under-utilization and hinder recovery, Drewry said in a statement. With the orderbook dominated by bulk carriers and container ships, two of the worst hit markets in terms of oversupply wreaking havoc with rates, it reflects the fact that for some time now ordering activity by shipowners has exceed the requirements of trade growth.
“The immediate prospects for the shipbuilding industry are therefore bleak. Furthermore access to funding—either through retained reserves or debt—is very limited for shipowners and in the circumstances it seems almost inevitable that new ordering levels will remain low for some time to come,” Drewry said.
It added: “Shipyards will have to fight for survival by securing enough of the limited new ordering that is likely to take place in the next couple of years.”
Photo: infomatique
