Recent troubles shipbuilding industry now facing are believed to be mainly caused by rapidly decreased newbuilding order owing to shrinking shipbuilding financing from European financial institutions.
However, some say over-supply from Chinese yards made newbuilding price to drop.
Newbuildings in 2011 exceeds 100m gt for the first time, however, about 40m gross tonnage is estimated to be a market capacity and newbuilding price is in a downtrend as well.
China, having built a bunch of yards during 2005-2008, had won massive newbuilding orders in low margin after Lehman Shock in 2008.
Although foreign currency exchange rate or global economy get better, depression in shipbuilding industry would likely to repeat unless supply demand gap narrows.
Meanwhile, Ministry of Land, Infrastructure, Transport and Tourism of Japan is known to work on reorganization of its shipbuilding industry in July.