In its recent global shipping market report, Deutsche Bank points out ship value and new orders will experience decline with shrinking financing support and growing overcapacity.
The chief economist of the bank made following predications: new orders for containerships and tankers are to plunge by 44% and 11% in the following twelve months while bulker orders are also projected to face unclear futures.
According to Deutsche Bank, although many shipyards set new record in receiving orders, the average contracted value for the newbuilding vessels has fallen by as least 30%.
The report says China and S.Korea took over 80% of global new orders in last year, especially Korean shipyards who nearly dominated the high-value market.
The bank estimates over 10 FPSO and FSRU will be ordered in 2012 at $250m-$500m each. Besides, orders for 35 LNG carriers are likely to be placed.
The report also points out that the profits for shipyards will see no improvements in the first two quarters due to the low-price and low-margin orders received in 2009 and H1 of 2010. Besides, shipyards would have to made efforts to handle the delayed or cancelled orders in 2007 and 2008 which may account for 20% of the total orderbook.