Global ship building down to lowest levels in ten years

According to the German Institute of Shipping Economics and Logistics (ISL), the total volume of tonnage on order in world shipyards fell by 5 % during the last six months, down to the lowest levels since ten years.

ISL says that, as of mid-July 2019, the global orderbook comprised 2,778 vessels with a combined 74 million cgt and 195 million dwt. This represents only 10 % of the existing fleet capacity, down from 15 % mid of 2015 and almost 60 % below the peak of 2008.

As a result, the number of active shipyards worldwide is down by about 50% since 2009. The global shipbuilding market has been suffering from a lack of orders for years. The volume of the order book is roughly one third of what it used to be mid of 2008.

The Institute says Asian shipyards are plagued by low utilisation rates and that, as a result, Chinese and other Asian shipbuilders have shown a particular interest to gain market shares in the field of specialized shipbuilding, i.e. cruise vessels, which – as of now – still remains a business dominated by European yards.

Source: Institute of Shipping Economics and Logistics

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