In the year-to-date the average newbuilding contract lead time turns out to have declined to its lowest level since 2001.
The 'lead time' for a newbuilding contract is the number of months between the vessel's contract date and its delivery date.
According to Clarkson Research, average lead times increased from 31.4 months in 2004 to 38.6 months in 2007. Record levels of contracting during the boom years between 2006 to 2008 boosted increase in the lead times.
However, in 2009, contracting fell by 70% year-on-year in cgt terms, which caused average lead times dropped from 37 months in 2008 to around 27 months in 2009.
Between 2009 and the year-to-date the global orderbook has reduced by 43% and average contract lead times now stand at 24.1 months, plummeted by 37.6% comparing with the peak year of 2007.
Bulker, in particular, saw the hardest fall in lead times, decreased to about 22.5 months year-to-date from around 42.5 months in 2007.
Meanwhile, in 2005 average lead times at Chinese yards were 7.9% higher than the global average. However, they now stand 0.6% below the global average, due to expanding rate of production.
Clarkson said, "new contract lead times topped during the boom in 2007, but since 2008 lead times have reduced, having influenced by increased capacity and a declining orderbook."
However, it forecast, "Although there has been sector and regional variations, average lead times could soon reach their lowest level on record."