It is suggested that the second quarter of this year is seen as an appropriate timing to invest in shipbuilding industry and the third quarter is suggested for shipping industry.
KB Investment & Securities of Korea has explained on March 27 through a report named “A discussion over a revival of commercial market” that in terms of shipbuilding, a recovery of ship finance is hard to expect within 2013, however, new orders for containerships and LNG carriers are anticipated, backed by actual demands.
Also, it said that when looking into new orders contracted for containerships after August 2011 when Europe suffered from an economic crisis, new orders coming from actual demands were mostly found from small and medium-sized shipping companies rather than top-tier ones, which represents that recent containerships have shortened lifespan till being scrapped that fleet exchange demands grow for fuel-efficiency.
Orders backed by actual demands are also expected this year, centering on containerships and LNG carriers, and furthermore, Big3 domestic builders are anticipated to reach $14.75bn worth of new orders in commercial shipbuilding segment which takes a ratio of 37.1% of a total shipbuilding and offshore target of $39.75bn.
Hyundai Heavy Industries of Korea set a target of $7.75bn worth of new orders in shipbuilding segment with $6bn in offshore for 2013 while Samsung Heavy Industries targets $3bn and $10bn in shipbuilding and offshore segment, respectively, and Daewoo Shipbuilding & Marine Engineering has new order targets of $4bn and $9bn for shipbuilding and offshore segment, each.
Meanwhile, as for shipping industry, the report said shipping companies’ losses are seen to continue till 2013, however, considering volumes of demolition, delivery and variations of GDP, the oversupply might be resolved from 2014.