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Maritime News

2017 an improvement for the newbuilding market in terms of ordering activity

After a subdued 2016 in terms of newbuilding orders, 2017 proved to be a totally different story, as owners took advantage of the aggressive pricing from shipyards. In its latest report, shipbroker Allied Shipbroking noted that “the newbuilding market remained overall subdued this year in terms of volume, although overall we did see considerably more activity than what we were noting back in 2016. The freight market rallies noted in the Dry Bulk Sector, helped feed a slightly more speculative attitude in the market, although this was relatively minimal when compared to previous years. In the Tanker market, despite the deteriorating conditions in terms of earnings, we witnessed a renewed interest in new orders, with most likely looking at the market with an opportunistic eye, taking advantage of the lower prices on offer by most shipbuilders. An important fact to point out is that both these sectors have seen their orderbooks decreased in all main size segments. This improved orderbook ratio can be of major importance moving forward, allowing many to take on the option for further ordering in the new year without considerable fear that it would put excessive supply weight on the markets”.

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