Japanese shipbuilders received 85 percent less export ship orders in Fiscal Year 2016 to date compared to the same period in FY 2105, data provided by the Japan Ship Exporters Association shows.
In the period between April 2016 and November 2016, Japanese shipyards received a total of 46 new export ship orders totaling 1,945,949 gross tons, compared to 305 new orders totaling 16,628,636 GT recorded in the same period a year earlier.
In November alone, the country’s shipbuilders signed only five new contracts totaling 336,300 GT, compared to 29 contracts totaling 1,095,000 GT signed in November 2015.
Some of the main reasons for the worrying dip in export orders is increased competition from Chinese and South Korean yards, as well as dwindling newbuilding orders due to a prolonged slowdown in the dry bulk and container shipping markets caused by a sluggish demand and a structural overcapacity, accompanied by low freight rates.
World Maritime News Staff