Slowdown Signs - New Ship Orders to Decline in China

SHANGHAI, May 8 -- Global ship industry keeps sliding, still on the way to the floor showed the news on May 6 that global new ship orders just posted at 127,000 DWT in April hitting new record low down by 97%YoY. It's expected that the whole year's new ship orders would be fewer than 10 million DWT in the world far away from the formal expectation of 40 million DWT.

    Despite, international ship price show signs of declining lately.

    As per statistics of Clarkson, the number of global new ship turnover rose to 23, 14 ships more than that in March but the quantity only concluded at 127,000 DWT down by 81.7%MoM or 566,700 DWT even fewer than 193,000 DWT in February hitting the record low this year.

    Bao Zhangjing chief-researcher of China Ship Industrial Economic Research Center said "New ships traded in April mostly are auxiliary ships for ocean engineering, despite several small product carriers."

    According to statistics of Clarkson, it's empty in trades of new ships like container ships, bulk carriers and oil carriers in April among which the absence of container ships has remained for 6 months.

    It's better in China that the state saw new ship turnover of 84,000 DWT in April about 7 times than March.

    Bao said "To me, the hundred thousands DWT new ship orders mean nothing. He insisted its estimation that global ship industry hasn't yet touched the bottom and still moves down to release risks.”

    Since last September the turnover continued diving for 8 months, not surpassing 1 million DWT so for. The YoY decline from last September to this April came out, respectively at 66.1%, 89%, 95.6%, 99.1%, 97.7%, 98.4%, 95.16% and 97%.

    In all, global new ship turnover went at 1.55 DWT to 1.67 DWT in the 1st four months down by 97%YoY from last year. In addition, new ship trade prices further fell down. As per statistics, Clarkson new ship price dropped 155 points in April.

    (Source: Shanghai Securities News)