Newbuild deliveries behind schedule in 2016

The following is the text of a news release from Hellenic Shipping News:

(LONDON) — Newbuild deliveries are running behind schedule so far this year for all ship types except the LPG segment. In a note Tuesday, ship valuations’ expert VesselsValue reported some very interesting figures, as it looked to analyze the number and value of all the 2016-built vessels that have been delivered so far in the year vs how many are still yet to be delivered. As such, just $28.4 billion worth of vessels have hit the water, which leaves an additional $43.8 billion on the order book.

Craig Jallal, VesselsValue’s senior data editor, said that “under normal circumstances, at just over the halfway point this year, we would expect to see half the 2016 deliveries to be in the water. But this is far from the case in 2016. The graph indicates the percentage of the fleet that has been delivered versus the amount remaining. Not surprisingly, given the dire state of the industry, deliveries have slowed. Overall, 60 percent of $43.8 billion of the scheduled deliveries due in 2016 have yet to happen. Only the LPG sector is on schedule, having taken delivery of $3 billion worth of vessels, with a further $3 billion worth to go before the end of the year. Not surprisingly, bulkers are some way behind schedule, but the longest delays are being seen in the offshore sector."

Similarly, just 20 percent of OSVs by value ($1.3 billion) were delivered, compared to another $5.5 billion (407 ships) due for delivery by the end of 2016. This is unlikely to happen and slippage in this sector may be considerable and a number of OSV deliveries may be pushed back into 2017 or later. VV says that many of the undelivered vessels in underperforming markets are candidates for slippage: the vessels' delivery dates may be pushed back into the next few years.

By Professional Mariner Staff