A recent report shows that more than 70% of Chinese shipyards are planning to scrap more than one ship in 2013.
According to the quarter report from Shanghai Shipping Exchange, about 49% of domestic shipyards are to scrap 5% of current fleet, 9% to scrap 6% to 9% and 12% to scrap 10%. Besides, 70% of interviewed insiders say that they are not going to place new order without planning.
However, even confronted with severe overcapacity, 14% of domestic owner still plans for new orders in the new year driven by current low newbuilding prices. Another 15% show to give up newbuiling projects due to capital shortage.
Shanghai Shipping Exchange also points out that shipping companies have to prepare both for the continuing shipping turmoil as well as long-lasting depression and investment loss.