Newbuilding prices of every vessel-type hit monthly lowest in December. Therefore, South Korean builders are said to be in consideration of setting a down-sized 2012 target.
According to Clarksons on 8 December, the Clarksons Newbuilding Price Index in December recorded the monthly lowest point of 139 this year. The index has gone up to 190 during a boom period in 2008 then sharply decreased to 136 after global financial crisis. Although it recovered to 140-level in early 2011, now dropped as low as that in 2009.
Newbuilding price of each vessel type also dropped. Bulker prices, in particular, has plummeted, all sizes down by over 10%. 76,000-dwt panamax bulker decreased the most to $29m, down by 15.94% on early 2011, 180,000-dwt capesize and 57,000-dwt handymax declined by 13.15% and 12.9% each, as well.
Tanker has dropped by 5-9%, suezmax plunged by 9.42% from $66.75m to $61m and aframax decreased by 7.45% to $52.75m on early this year. VLCC showed the smallest fall, down by 5.23% to $99.5m.
Builders, now planning management strategy for 2012, are facing difficulties by down-grading newbuilding price.
A Korean yard, asked to remain anonymous said, "As projected global economy for 2012 worsens, setting a new order target for 2012 about the same as 2011 is currently in review."