Ship orders worldwide have shrunk to the lowest level in 15 years as vessel owners struggle with excess capacity that has kept freight rates well below break-even levels, says a press release published on WSJ website.
Present condition as compared to past
There were 3,200 vessels of a combined 81 million gross tons ordered globally in the first quarter, the lowest figure since 2004, marine data provider Clarksons PLC said in a report released Friday.
“The global order book has declined to its lowest level since the early stages of the shipbuilding boom,” George Warner of Clarksons Research said.
Crude tankers and bulkers made up around two thirds of all orders a decade ago, Clarksons said.
but this year the share has dropped to 42% as volatility in commodity markets and changes in global energy consumption have triggered shifts in ocean-going trade.
The 141 LNG carriers on order represent 13% of the total order book, compared to just 2% a decade ago, Mr. Warner said.
Growing demand
The LNG market is surging on growing demand from countries including Japan, China and India, which are turning to gas rather than coal for power generation and heating.
Seaborne LNG cargo markets also are being fueled by growing U.S. gas exports.
Cruise ship orders also make up a bigger part of the mix, comprising 12% of the global order book, compared with 2% a decade ago, according to Clarksons.
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Source: Wall Street Journal
