Asian yards prepare for fresh beating in 2016

There is an order shortage at Asian shipyards, where the past year will be replaced by increased pressure, projects the industry. South Korean pains spread to the rest of the Asian yards, reports Bloomberg.

Photo: Thorbjørn Hansen

The Asian shipyards are preparing for yet another tough season which could allegedly become even worse than the recently concluded year 2015, reports Bloomberg. There is not exactly a plethora of orders for offshore projects in light of the low oil price and the lack of growth in China, a factor that has also halted the ordering of new ships by the three major carriers in South Korea, whose, shares tumbled down in 2015 for the second consecutive year.

Customers are pushing deliveries of already ordered vessels, or choosing to downright cancel orders, and this looks set to continue in the coming year, a Singapore-based analyst tells Bloomberg. For instance, no one is ordering new rigs, he says - and meanwhile, these problems are now spreading to the rivals in Japan, China and Singapore, several of which are warning of major losses due to the low oil prices.

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