Yard Reduction 'Not Enough'

qinxingchen

Yard capacity has reduced by around 33% up to around 35m cgt over the past five years, however, fleet supply still surpasses demand. Norwegian broker RS Platou estimated that fleet supply would continue to exceed those needed in the next two years, saying "We expect the overcapacity in the merchant fleet to be some 6% this year." Amid low fleet demand, significant number of shipyards have closed or reduced employment. Meanwhile, according to RS Platou, the number of Chinese shipyards grew to 127 in 2011 from 22 in 2012, which increased its productivity by 50%. However, during the next several years, China will see a "substantial consolidation" among these facilities. Published : March 7, 2013