A survey released by Clarkson’s Research has suggested that there has been a dip in the new buildings orders, in the dry bulk segment. These results are based on the trends of the first seven months of the year. This can be seen as a positive step towards reducing the overcapacity.
The world’s dry bulk carriers have ordered only 58 new ships in the first seven months of the year. This number signifies a 91 percent dip in the carrier’s desire to order new tonnage as compared to the same period last year. This will lead to a 20 percent decline in the bulk carrier order book since the start of 2015 with the firm pace of deliveries. The effect of this trend may not be observable in the short-term, but the lack of recent ordering could significantly slow the fleet growth beyond 2016. Compared with ordering level of 2013, the carriers had ordered a total of 1,200 dry bulk vessels as reported by the Clarkson’s Research. The reasons for the decline in the order book are the shrinking cargo volumes and oversupply of ships in the market. This trend can be looked upon as a temporary breather and can prove out to be positive for the industry. As the new orders are on hold, the industry would safeguard itself from excess shipbuilding capacity. Normally overcapacity leads to an unfavorable impact on vessel prices.
Clarksons Research is known for its authoritative provider of intelligence for global shipping for enabling the key business decisions that shape the maritime industry.
The 58 vessels ordered consist of one Capesize, 19 Panamax, 21 Handymax and 17 Handysize. The trend of low ordering level can benefit the market in the long term.
Source: Clarksons
