SCI puts new orders on hold

State-run Shipping Corp of India (SCI) has put orders for new vessels on hold till March although its long-term plan to buy 40 vessels by the end of 2011 is still on track according to Chairman and Managing Director S. Hajara. “We have decided not to order till March but we are taking deliveries on schedule. There is no change in plans to order 40 ships worth $2.5-3 billion by 2011/12,”

Hajara also said he expected the tanker freight market to remain stable in the near-term on firm energy demand. Tankers constitute about 80% of the company’s total tonnage. Hajara added that vessel prices have not fallen despite the global economic downturn as shipyards had full order books till 2012. He said “Prices of key inputs and components for building ships have not fallen significantly despite slowdown.”