According to Asiasis, new order volume is to reach $250.0bn in the following four years with the newbuilding price declining to the level in 1980s and the fever in eco ships still on the way.
At the Informa Scandinavian Ship Finance Conferenc held in Copenhagen, Peroto Shipping’s analyst Nicolai Hansteen said current attractive newbuilding price has stimulated owners’ appetite for new orders despite of the weak ship financing support.
According to Nicolai Hanstee, the newbuilding cost of VLCC has declined to $85.0m in China, at which the shipyard is likely to loss money.
Besides, Japanese shipyards began to pen orders at low price against Yen devaluation, affecting global shipyards’ positive expectation for future higher profits.
Shipbroker experts put forward that most Asian shipyards received ordered at lower-than-cost prices last year considering currency inflation with newbuilding price dropping to the level of 1986. Chinese shipyards are estimated to face a loss of 6%-8% by receiving bulker orders while Japanese shipyards to lose about 16% to 1818% with the deprecation of Japanese Yen.