20% of box ship orders postponed

Global - Orders for ships being delayed or postponed is starting to show in the order book, according to a Baltic and International Maritime Council (BIMCO) study of the 5,705 ship orders.

In the last three months, one in five containerships due for delivery have been postponed, said the Danish shipping association.

The BIMCO analysis finds that while the container shipping segment was hardest hit with 20% of all orders delayed, the average for all segments of ships that were delivered at a later date was one in six.

"Every deferral of delivery is a result of intense and protracted negotiations between parties with mutual survival interests - yards needing cash in the short term and employment in the long term and owners on their part trying to balance their need for capacity against sour markets and financial challenges," Peter Sand, a shipping analyst at BIMCO said.

At the top of the liner postponement list is Zim Integrated Shipping Services, which postponed the delivery of a mega container carrier of 10,070 TEU (20-foot equivalent units) from Hyundai Samho shipyard in South Korea by almost six years.

The vessel, which was scheduled for delivery in September 2009 is now postponed to 2015.

On the average, BIMCO found that dry bulk carriers were postponed by eight months, while tankers for a period of seven months. The ships are usually set to be delivered anywhere between one month and two and a half years later than originally agreed between the owner and the shipyard, the Journal of Commerce (JOC) reported.

"These postponements show very clearly that the negotiations between owners and shipyards are changing the vessel supply outlook a great deal," said Sand.

Sands continue, "Whether this also means that we will see a smaller amount of tonnage being delivered remains to be seen."

________________________________________________________

Managing people? For HR and leadership strategy, Human Resources has it covered.

Get your marketing department up to speed with Asia's most read marketing site
marketing-interactive.com