Lower price would only increase sales and purchase activity in shipping market and newbuilding investment seems to be made mainly by ship capacity, but by the prices.
Park Mu-Hyun, an analyst at E*Trade Securities said, "Newbuilding order for boxship is largely affected by owners' competition for service market share. Therefore, low pricing is not enough to surge newbuilding investment."
And explained, "Also, after global economic depression, second-hand prices fall much bigger than newbuilding prices."
Park said Korean shipyard have been placed orders for mostly fuel-efficient and space-efficient vessels.
He added, "Shipping market is facing a serious tonnage oversupply problem, which seems to continue for the next few years, then newbuilding price will drop further."
And emphasized, "Comparing with current fleet, owners would better invest in newly-developed design."