'Posidonia 2012 (June 4-8)' has been silent with no news of major investment, but just Hyundai Heavy Industries of South Korea's signing ceremony for 1+1 162,000-cbm newbuilding LNG carriers with a Greek owner Tsakos Energy Navigation.
Historically, the event has offered an opportunity to finalize discussions and have a signing ceremony. However, 2012 saw only one LNG carrier contracted, amid global shipbuilding and shipping market depression, doubled with Eurozone crisis.
South Korea's Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries used to contract massive orders for tankers, etc., however, this year they saw no fruitful outcome from Posidonia.
With no on-going negotiations with Greek owners ahead of Posidonia, there was no news of contract signed or owners wishing to order newbuildings, as well.
Industry player said, "This year has been more focused on building networks with customers than finalizing the contract."
Gibson said, “Posidonia is often the vehicle used to announce the latest round of tanker investment, this year it has been ominously silent."
“In the first 5 months of this year, Hellenic shipowners have placed orders for just three tankers resulting in a mere 300,000 dwt being added to the orderbook. Meanwhile, During the whole of 2011 Greeks placed orders amounting to 3.6 million dwt (32 tankers)."
Gibson explained, “Obviously the pace of ordering has eased considerably in recent months as the supply situation chokes the life out of the tanker market.”
Clarkson Hellas said that last week saw unusually few contract reported and with the summer holiday period coming up, attentions will getting paid to how the market will evolve in the second half of the year.
"Due to the excess supply of capacity along with the continued limited demand, shipbuilders will likely be burdened with downward pressure. However, the hope should remain for the yards that the global economy would begin to pick up again and the extensive design development work carried out will begin to reap benefits as the year progresses, as well," said Clarkson Hellas.
Golden Destiny mentioned that shipyards are struggling to survive with South Korean shipyards placing at the top in newbuilding activity this year. IHS Fairplay data showed that Korean shipbuilders contracted 4.73m dwt in the first quarter of 2012, while Chinese and Japanese won 4.35m dwt and 2.8m dwt of new orders, respectively.