Global shipbuilding industries are struggling with plummeted new order and decreasing newbuilding price.
The Clarkson Newbuilding Price Index stood at 133.8 points at the end of May, down by 5.1p (3.7%) year-on-year and by 0.4p on previous month. The index is now at its lowest value since March 2004.
Also, the index saw a big drop by 27.2% from 183.9p in the end of 2007, the ever-highest value. According to Clarkson Research, in the first five months, overall 6.7m cgt were contracted, down by 50% y-o-y, and an estimated $22.3bn has been invested, which represents a y-o-y decline of 47%.
At the end of May, global newbuilding orderbook recorded 102.6m cgt, down by 16.2% from 122.4m cgt in the end of 2011. Only medium-range product carrier and LNG/LPG carrier have seen increases in their orderbook.
Particularly, newbuilding price for boxship has noticeably decreased and only a total of nine newbuildings (eight vessels under 2,200 teu) have been contracted during the first five months, compared to 140 orders seen in the same period last year, majority of them were ultra-large vessels.
The benchmark newbuilding price for a 13,000 teu containership, as of the end of May, fell by $3m month-on-month to $116m, while the benchmark price for a 8,800 teu boxhip dropped by $2.5m to $84.5m. Due to significantly low investment in larger sizes, their newbuilding prices recently plummeted.
The benchmark price for a VLCC and capesize bulker stood at $96m and $46.5m, compared with $99m and $48.5m in the end of 2011, respectively.
Newbuilding prices are on down slides in almost every sector, in 2012, as well. The benchmark price for 76,000-dwt and 57,000-dwt bulker stood at $27.5m and $25.5m, down by 17.9% and 17.7% year-on-year each, the largest drop among all ship types .
However, 51,000-dwt tanker's benchmark newbuilding price merely dropped by 2.8% y-o-y to $34.5m.
The benchmark price for LNG carrier only saw an increase by 1% y-o-y, 160,000-dwt vessel now standing at $202m, but comparing with $245m in the end of 2008, it have declined by 17.5%.