Danish Ship Finance: Newbuilding prices could plummet to 2002-level

Danish Ship Finance (DSF) estimates that newbuilding prices from yards in Asia may actually be plunge to levels corresponding to those of more than a decade ago once many yards run out of orders this year and the next.

Photo: Hempel

Newbuilding prices from shipyards in China and other places in Asia could plunge to 2002-levels as yards run out of orders. The development is in progress this year and will continue in 2014, writes Danish Ship Finance in its biannual analysis, Shipping Market Review.

"Small and medium-sized privately-owned Chinese yards appear to be at the epicentre of the capacity adjustment process. We estimate that by the end of 2014 global yard capacity could be back at the 2008 level…Given the current market situation, it is critical to consider whether the 2002 low represents the potential downside risk for current newbuilding prices: despite the gloomy outlook, we are inclined to believe that this will not be the case,” reveals the analysis from Danish Ship Finance. 

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

Related articles

Latest news

See all jobs