Greek newbuidling orders dominate in 2017, according to the latest data of VesselsValue. The company indicates that Greek owners have placed 35 orders for new bulkers and tankers since the start of 2017, while globally the orders are only 119. The shipping industry is worried that there is an imbalance of supply and demand between the number vessels currently on the water and the amount of cargoes. This situation does not look to improve in the near future as there is just under 66 million DWT of tankers and bulkers to be delivered during the rest of 2017, representing 47% of the current bulker and tanker order book.
The global total amount of new shipbuilding orders reached 750,000 CGT last month and 340,000 CGT and 260,000 CGT went to South Korean and Chinese shipbuilders, respectively. The Japanese shipyard orders came to nil. In terms of numbers, Korean shipyards clinched new orders to build 12 ships.
“Over the last 5 years, a major source of finance & investment in the newbuilding market came from the private equity sector who invested heavily to capitalize in the post-crash market downturn”, says Associate Director of VesselsValue, Claudia Norrgren, in official report. “Today the preference from the private equity sector is to invest in tonnage already delivered and on the water so that an immediate return on their investment can be realized. This led to a lack of newbuilding finance available and resulted in a gap in deliveries at the major shipyards and therefore increased appetite from them to take orders”, adds her report.
In early 2017 the cash rich Greek community took advantage of this, securing a number of orders at competitive prices.
Through 2017 the yard capacity has reduced but continued buying demand from the private sector remains. This is one of the major factors that has led to the increase in newbuilding prices over the past 5 months.