As scrapping for 2012 seems to hit the highest yearly record, this would help resume newbuilding ordering, said LIG Investment & Securities of South Korea on April 23, suggesting Hyundai Heavy Industries as the best preferable share.
Recently, newbuilding price, second-hand price and charterage all are firm in tone, hitting the bottom.
Considering those sold for scrap during the first quarter, bulkers 5.2% of overall tonnage, tankers 3.2% and boxships 1.6% are estimated to be sold for scrap in 2012.
Analyst Choi Kwang-Sik, LIG said, "Bulkers have increased to 4.3% of global fleet last year, while tankers demolitaion started to grow from 2010 and containerships from 2009."
Added, "Increase in scrapping would boost new order in 2012 by cushioning swelling fleet."