Delayed newbuilds pose storage problem

Shipyards in South Korea are having difficulties in mooring newbuildings of which Deliveries of newbuildings that have been delayed by shipowners, are creating mooring difficulties for Korean shipyards. A rash of owners’ request for delivery delays has caused a great number of completed newbuildings to be moored at shipyards and also now anchored offshore.

According to industry sources, laid-up newbuildings amount to dozens of ships at each yard. Shipowners are delaying accepting delivery of newbuildings as they have to pay 20% to 40% of the ship price when they take over the vessels. Accordingly, yards are faced with double whammy; worsening liquidity position due to delayed payment of the balance and the cost for keeping the delivery-delayed newbuildings safely. In case of an 180,000 DWT bulker, daily maintenance costs are estimated to total some KRW 10m ($7,992) including anchorage dues of KRW 3.3m.

An official from shipbuilding industry said, “Temporarily-moored newbuildings at yards are said to be amounting to hundreds. Shipbuilders’ financial situation keeps on worsening due to delayed payment of the balance following delivery delays as well as new orders drought causing advance payment inflow stoppage.”