New ship building contracts hit 20-year low

The worlds dry bulk, container and offshore shipyards have become the next victim of the deteriorating conditions in the markets as 2016 looks to set the record for the lowest new building contracts in more than 20 years.

After a decline from 2010 to 2012, shipbuilding had a rebound in 2013 and was expected to level out over the next few years. The reality was a slight decline in 2014 and 2015, but still high levels of contracting measured by compensated gross tonnage (CGT). Since then, shipyards have crashed, as the contracted CGT globally has reached its lowest level since on record.

MHI hopes to forming shipbuilding alliances

Mitsubishi Heavy Industries (MHI) has said it is hoping to form new alliances with three local Japanese shipbuilders in an attempt to manage the changing shipbuilding environment.

The company added that it had seen a need to undertake, “swift and progressive steps to secure the competitive strength.”

HHI records profit in 2Q 2016

Hyundai Heavy Industries (HHI) has reportedly stabilised and is back in the black following a public disclosure of its 2016 second quarter earnings.

According to a regulatory filing, during between April and June HHI recorded 9.86 trillion Korean won (US$8.75 billion) in sales while operating income stood at 557.2 billion won, bringing accumulated sales and operating profits for the first half of this year to 20.1355 trillion won and 882.4 billion won respectively.

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