Japanese Ship Orders Drop Nearly 80 Percent

Japanese export ship orders during the first half of this year sank to the lowest level for a January-June period in 16 years, indicating a recovery in shipowners’ flagging demand for new vessels is not yet on the horizon. Japan, one of the world’s top shipbuilding nations along with South Korea and China, received orders for export ships totaling 2,343,750 gross tons between January and June, down a staggering 79.3 percent from the same six-month period in 2008, according to figures released by the Japan Ship Exporters’ Association.
Japanese shipbuilders received orders for 55 export ships during the January-June period. Of the 55 ships, 40 are bulk carriers totaling 1,462,900 gross tons, 12 are oil tankers totaling 794,850 gross tons, one is a general cargo vessel of 72,000 gross tons and the remaining two are other ships totaling 14,000 gross tons. The 55 ships total 1,155,380 compensated gross tons.
During the same six-month period last year, Japanese shipbuilders received orders for 255 export ships – 213 bulk carriers, 32 oil tankers and 10 general cargo vessels.
The JSEA figures also showed that Japanese export ship orders tumbled for the ninth consecutive month in June on a year-on-year basis, plunging 72.9 percent to 636,990 gross tons.
Japanese shipbuilders received orders for 13 export ships in June. Of the 13 ships, nine are bulk carriers totaling 383,790 gross tons, three are oil tankers totaling 181,200 gross tons and one is a general cargo vessel of 72,000 gross tons. The 13 ships total 313,687 compensated gross tons.
Japanese export ship orders suddenly started to plunge in October 2008, when the global financial turmoil that had erupted the previous month began to take its toll.
The June decline followed drops of 83.9 percent in October, 79.7 percent in November, 91.1 percent in December, 75.9 percent in January, 84 percent in February, 81 percent in March, 73.8 percent in April and 89.8 percent in May.