Japanese export ship orders fell 8.5 percent in June from a year earlier to 499,370 gross tons, according to figures released by the Japan Ship Exporters’ Association (JSEA).
Industry watchers attribute the decline to shrinking demand for new vessels from shipowners, coupled with growing competition from shipyards in South Korea and China.
The 8.5 percent decline in June was the third straight monthly drop year on year and was significantly slower than the 43.5 percent drop in April and 44.6 percent in May.
The JSEA said local shipbuilders received orders for three bulk carriers and three tankers in June. The six export ships total 280,129 compensated gross tons (CGT).
Japanese export ship orders sank 31.1 percent in the first half from the same six-month period last year to about 3.488 million gross tons. In the January-June period, Japanese shipbuilders received orders for 67 export ships totalling 1.554 million CGT.
Shipbuilders in Japan face shrinking demand for new vessels amid a slowdown in the global economy stemmng from the European debt crisis and tough competition from their Korean and Chinese rivals.
Japan’s shipbuilding industry, the world’s third-biggest by tonnage for new contracts, received 59 per cent fewer orders in the first quarter after a surge of orders last year didn’t repeat and yards focus on more profitable ships, the Journal of Commerce said in a report.
Orders fell to 1.55 million CGT from January to March from 3.81 million CGT a year earlier, the Journal cited the 20-member Shipbuilders’ Association of Japan as saying last Tuesday, citing JSEA data.
Orders worldwide rose to a record last year as shipping lines rushed to buy oil tankers and bulk carriers before April 1, when new rules requiring thicker, more expensive hulls took effect, the report said. It said new business in Japan also declined as the country’s yards sought only the most lucrative projects.
The association estimates orders this year may fall 20 to 30 per cent.