Orders at Japanese shipyards fell 36% year on year (y/y) in February, continuing its descent as investment appetite for newbuildings has been affected by the sluggish dry bulk market.
Figures from the Japan Ship Exporters’ Association (JSEA) showed its member yards clinched 30 export orders totalling 1,522,900 gt in March 2015, down from 47 export orders of 1,885,291 gt y/y.
Japanese yards specialise in building dry bulk carriers.
The Baltic Dry Index’s plunge to a historic low in February has been discouraging investment in bulkers, as China’s coal demand slows and Indonesia shows no sign of resuming exports of raw ore. A deluge of bulker newbuilding deliveries this year makes the market outlook bleak.
The orders in March comprised two container ships, 11 Handysize bulkers, six Handymax bulkers, two Panamax bulkers, one coal carrier, three ore carriers, one VLCC, one Aframax tanker, one LPG carrier, and two chemical tankers.
JSEA member yards exported 33 ships of 1,458,492 gt in March, up from the 30 ships of 1,327,116 gt exported y/y.
As of 31 March 2015, Japanese yards’ outstanding orderbook stands at 632 ships of 27,641,720 gt, compared with 658 ships of 27,716,641 gt in February 2014.