Mideast shipowners stand firm on orders

A recent analyst report from Drewry Shipping said orders for at least 30 new tankers have been cancelled since last August. However, shipping companies in the Middle East insist they will not follow suit according to Saleh Al Shamekh, president for oil and gas at the National Shipping Company of Saudi Arabia. He expects to receive the 50 VLCCs and chemical tankers on order by 2011.

Other regional tanker operators, such as Gulf Navigation Holding, the National Iranian Tanker Company and Gulf Energy Maritime, are planning to expand their respective fleets by acquiring new ships. It?s believed Middle East shipping companies account for more than 80 VLCC orders.

Elsewhere, shipowners in Asia have already cancelled orders for 29 new build tankers, 10 suezmaxes and four VLCCs, amid the economic downturn. They include China?s Yangfan Group, Sasebo Heavy Industries from Japan and Hyundai Mipo in South Korea. Financing problems and concerns about oil demand in the coming years are the main reasons for the increase in cancellations.