August 2016 Global Shipbuilding Industry Monthly Report

1. 43 new global orders
Global new orders in August 2016 totaled 43 vessels, with a combined deadweight tonnage of 2,768,300. Compared to July 2016's 25 vessels and 2,020,703 deadweight tonnage, this represents a month-on-month increase of 18 vessels and a 36.96% increase in deadweight tonnage. Compared to August 2015's 105 vessels and 6,500,104 deadweight tonnage, this shows a year-on-year decrease of 62 vessels and a 57.42% drop in deadweight tonnage.
In terms of vessel type, Bulk carriers ( Vessel type   Shipyard   Sales ) 2 vessels, totaling 126,000 deadweight tonnage; Container ships ( Vessel type   Shipyard   Sales ) 13 vessels, totaling 19,422 TEU; Oil tankers ( Vessel type   Shipyard   Sales ) 14 vessels, totaling 2,267,500 deadweight tonnage; Chemical tankers ( Vessel type   Shipyard   Sales ) 3 vessels, totaling 19,800 deadweight tonnage; 2 offshore support vessels, totaling 100,856 CGT; 9 other vessel types, totaling 223,287 CGT. In terms of order type, 2 Handysize bulk carriers were newly ordered; 13 Handysize container ships were newly ordered; 7 VLCCs and 7 small oil tankers were newly ordered.

2. August completion volume dropped by 8.40%
In August 2016, global shipyards delivered 101 new vessels, totaling 6,052,028 deadweight tonnage. Compared to July 2016's 141 vessels and 6,606,790 deadweight tonnage, this represents a month-on-month decrease of 28.37% in quantity and an 8.40% decrease in deadweight tonnage. Compared to August 2015's 173 vessels and 7,007,843 deadweight tonnage, this shows a year-on-year decrease of 41.62% in quantity and a 13.64% decrease in deadweight tonnage. In terms of vessel type, 27 bulk carriers were delivered this month, totaling 2,282,332 deadweight tonnage; 4 container ships were delivered, totaling 20,392 TEU; 17 oil tankers were delivered, totaling 2,666,372 deadweight tonnage; 9 chemical tankers were delivered, totaling 392,581 deadweight tonnage; LPG carriers ( Vessel type   Shipyard   Sales ) 8 vessels, totaling 512,400 cubic meters; 28 offshore support vessels, totaling 90,857 deadweight tonnage; 8 other vessel types, totaling 70,082 deadweight tonnage.
3. Newbuilding prices have fallen
In August, the newbuilding price index for bulk carriers, tankers, and container ships was 110, 143, and 70 respectively, with month-on-month decreases of 0, 1, and 1 point respectively.
In August, newbuilding prices for bulk carriers remained flat compared to July, except for Cape-size vessels, which decreased by US$2.5 million to US$41.75 million. Panamamax (75/77 KDWT), Kamsarmax (61/63 KDWT), and Handysize (32/35 KDWT) bulk carriers were priced at US$24 million, US$22.25 million, and US$19.5 million respectively. Tanker prices fell month-on-month. VLCC (315-320 KDWT) was priced at US$86 million, Suezmax (156-158 KDWT) and Aframax (113-115 KDWT) fell by US$750,000 to US$56 million and US$46 million respectively, Panamamax (73-75 KDWT) was priced at US$41.5 million, down US$500,000, and Handysize (47-51 KDWT) was priced at US$33.25 million, remaining flat compared to last month. Container ship prices remained flat compared to July, except for 1000-1100 TEU containers, which fell. The prices for 16000-16500 TEU, 10000 TEU, 4800 TEU, and 1850-2100 TEU were US$126.5 million, US$92.5 million, US$43.5 million, and US$16.75 million respectively. The price for 1000-1100 TEU containers was US$23 million, down US$500,000.
4. August new order summary
In August, global new orders totaled 43 vessels, with a combined 918,529 CGT. China accounted for 22 vessels (324,500 CGT), Japan for 5 vessels (166,800 CGT), and South Korea for 8 vessels (207,500 CGT). These represent 35.33%, 18.16%, and 22.59% of the total new orders respectively.
Compared to the previous month, new orders increased significantly, but the situation for the three major vessel types remains pessimistic. August's 43 new orders represent a 32.09% month-on-month increase in corrected gross tonnage. The proportions of China and South Korea increased, while Japan's proportion decreased. China received 22 orders, Japan 5, and South Korea 8, with significant increases for China and South Korea, and a decrease for Japan. According to data from the International Ship Network, the three major vessel types accounted for 29 of the orders, with an increase in orders for each type this month. 13 container ship orders were placed, all with Chinese shipyards; 2 bulk carrier orders were placed, all with Japanese shipyards; 14 tanker orders were placed, with 6 going to Chinese shipyards, 5 to South Korean shipyards, and 3 to Japanese shipyards; 3 chemical tanker orders were placed, all with South Korean shipyards. 2 offshore support vessel orders were placed, both with Chinese shipyards. The data shows that new orders remain at a low level this month, and the overall market situation remains severe. The data shows a 72.00% month-on-month increase and a 59.05% year-on-year decrease in the number of new orders; a 36.96% month-on-month increase and a 57.42% year-on-year decrease in deadweight tonnage.