Deliveries of bulker newbuilding have surpassed the psychological barrier of 1,000 ships in a single year for the first time ever.
Bulker newbuildings have passed 1,000 ships for the first time everIn the first eleven months of 2011, 1,050 bulkers of a cumulative 88.5mdwt have entered service, according to data compiled by Clarksons.
“This is the first time that more than 1,000 dry bulk vessels have been delivered in a single year, and already in the year to the end of November, deliveries are 8.5m dwt higher than in the full year 2010,” said analyst Jonathan Key.
He adds that deliveries for the full year are projected to reach 95.5mdwt, which would represent a year-on-year increase of 19.4% compared to 2010, the previous largest delivery year.
By bulk vessel type, the Panamax sector is forecast to see the largest proportional output increase, up 50.4% year-on-year.
Key says the improved output from South Korean yards has been part of the reason for the increase in deliveries in 2011.
“Already in the year to date, bulk deliveries from Korean builders total a combined 4.1mdwt, more than those in 2010,” he says.
“This is mainly due to yards starting to deliver much of the heavy bulker contracting of 2007-08, having previously been focused on the earlier boom in containership orders.”
Clarksons figures show that in 2007 Korean yards delivered 85% more containerships than bulkers in deadweight terms, and this was 90% in 2008.
Last year however, they handed over 36% more bulkers than boxships. In the year to date, this figure has jumped to 87% in favour of bulkers.
Furthermore, Key says bulker output has also increased due to the performance of newly established yards in China.
So far in 2011 seven Chinese yards have delivered their first bulker, whilst twelve yards which saw their debut bulker delivery in 2010 have improved their output this year.
Key also attributes the increase to a decline in the rate of ‘non-delivery’, which for the full year is set to decrease compared to last year.
“Though the rate is lower in percentage terms, forecast deliveries imply that 26.8mdwt will slip over into 2012, compared to 25.9m dwt which slipped in from 2010,” said Key.
“This larger volume will add to a not-inconsiderable scheduled orderbook of 120.2mdwt, raising the possibility that bulker output in 2012 might even exceed 2011.”
“At present, 2012 is not projected to reach quite the same levels as this year, but could certainly come very close,” he warned.