The first week of April has been lackluster for newbuilding market, on the back of holidays in China and Easter in Europe.
Clarkson Hellas mentioned in its latest report that while the second quarter of newbuilding market has commenced "particularly quiet", the Q1 2012 has seen 201 contracts in the world, sharply decreased by some 50% from the same period in 2011, which saw approximately 415 contracts.
The first quarter has proved to be challenging for both owners and shipyards. During the same period, BDI has declined from an average of 1,365p for the Q1 2011 to an average of just 867p. It seems that a weak freights coupled with a frozen ship financing has led to reduced newbuilding volumes.
Yards with diversified product portfolio, such as high-value vessel, will be able to take advantage of the niches of the market that yield opportunity, however, those small-to-medium yards dependant on traditional commercial ships would struggle through the second quarter.
Clarkson Hellas said, "It will be interesting to note whether the pressure build up from the Q1 translates into another dip in values over the Q2."
Meanwhile, according to a separate report from Golden Destiny, the last week closed with 23 fresh orders worldwide totalling about 792,000 dwt, down by 43% week-on-week.
Mitsubishi Heavy Industries of Japan has contracted for a newbuilding capesize bulker from China Steel Express of Taiwan.
China's Guangzhou Shipyard International booked an order for three 50,000-dwt MR product carriers from Tankers Inc of Denmark, with an option for three more, while Jiangnan Shipyard of China sealed an order for two 22,000-cbm ethylene carriers from Navigator Gas, with an option for four more.
In the offshore segment, Samsung Heavy Industries of South Korea inked 1+2 drillships from Ensco on April 6, and STX OSV won an order for two anchor-handling tug supply vessels from Norway’s Farstad Shipping.