Only nine ships ordered worldwide in January

Orders of only nine ships were made in January worldwide, a meagre 6% of last year’s 151 ships, according to the London-based shipbuilding industry research company Clarkson. Four went to Korea and five to China, while shipbuilders in other regions, including Japan and Europe, did not receive a single order. In January, the global shipbuilding industry saw orders for new ships fall 96% from a year earlier, based on CGT (compensated gross tons). Korea’s “Big 3” shipbuilders, Hyundai, Samsung and Daewoo, also received no orders in February.

Worse still, prices are falling. The monthly Clarkson shipbuilding price index stood at 165.7 at the end of January, returning to where it was three years ago. The number of retired ships is also on the increase. The number of scrapped ships worldwide in January reached as many as 75, an impressive 20% of last year’s total of 372. With the decreased volume, ship-owners seem to have judged that it is better to scrap old ships rather than to pay expenses to retain them.