Korean shipbuilding industries' new order for August recorded the lowest in 2012.
In a recent report from Clarkson, Korean shipbuilders only contracted six newbuilding Medium-range product carriers of a cumulative 0.15m cgt ($202m) in the last month, which represents the lowest monthly order over the last three years.
Overall 71 vessels of a combined 1.39m cgt were booked in August and Chinese shipyards accounted for 50% by having inked 35 vessels of a cumulative 0.7m cgt ($1.144bn).
Japanese contracted 13 vessels of a combined 0.2m cgt ($261m), more than Korean.
As for overall new orders for the first eight months, Korea booked 154 vessels of a combined 4.79m cgt ($16.416bn), while China and Japan penned 260 vessels of a cumulative 4.26m cgt ($8.849bn) and 77 vessels of a combined 1.49m cgt ($2.586bn) each.
In value terms, Korea's new order stands twice as much as that of China, since Korean shipbuilders contracted high-value vessels/units, such as LNG/LPG carrier, product carrier, PCTC, drillship, etc.
Meanwhile, global orderbook recently shrank up to the lowest point after around May 2005. Backlog fell under 100m cgt as of the end of July for the last seven years and at the end of August, it remained at 96.36m cgt (4,795 vessels).
China still at the top with 34.97m-cgt (1,935) orders on the book, representing 36.3% of orderbook in the world, followed by Korea with 30.18m-cgt (876) and Japan with 15.36m cgt (760), each accounting for 31.3% and 15.9% shares.
The Clarkson Newbuilding Price Index also continues to drop to 127 points at the end of August, the lowest point since March 2004, from 128.5p at the end of July. Comparing with the boom period in August 2008 having marked 190p, it plummeted by 33%.
Most of segments see decreases in prices, for instance, 180,000-dwt capesize bulker is traded in $46.5m, 4,800-teu boxship fell to $45m, etc.
Analysts say that while rate, second-hand price, etc., are still depressed, newbuilding price won't be able to rebound for a while.