Clarkson new ship building price index showed WoW improvement

According to the latest data from Clarkson, new shipbuilding prices continue to show improvement. Last week, Clarkson new shipbuilding price index rose to 130 versus 129 a week ago. Clarkson new shipbuilding index bottomed at126 in June and has risen 3.2% since then. Prices of all major ship types with the exception of LNG carriers have shown recovery in the last 3.5 months with mid-large size containerships, capesize bulk carriers and aframax tankers showing 4-10% price hike.

We remain positive on the prospects of ship price hikes, even though magnitude of the hikes is unlikely to be huge as ship owners continue to suffer from low freight rates and weak balance sheets. YTD global new ship orders are up 63% YoY (CGT terms) and recent contracts signed by shipyards continue to point to better pricing environment for large fuel-efficient ships. As there are only a limited number of shipyards globally that can build large fuel efficient ships on time with slot availability for early deliveries, we expect upward pressure on ship prices to continue in the near term.
Source: CNFOL