Newbuilding market recovery set keo nha cai cup c1 continue in 2018

The monthly China Newbuilding Price Index, which tracks ship prices at Chinese yards based on inputs from 19 member broking houses, rose two points keo nha cai cup c1 768 in December 2017.
The dry bulker sub-index increased four points keo nha cai cup c1 787, while the tanker index edged up one point keo nha cai cup c1 823 points. At the same time, the containership index grew three points keo nha cai cup c1 789.

Strength keo nha cai cup c1 the underlying freight market, an attractive yuan valuation, as well as steel prices all played a role keo nha cai cup c1 the upward movement.
Additionally, higher interest rates have increased shipyards’ funding cost, which, in turn, contributed keo nha cai cup c1 the rise in ship prices, according keo nha cai cup c1 CNPI brokers.
Containerships
When it came keo nha cai cup c1 boxship new orders last year, Chinese yards outpaced Korean yards, with 48% of the global pie versus 36%.
Chinese yards’ strength keo nha cai cup c1 building feederships, as well as their success keo nha cai cup c1 winning the supersized-vessel orders placed by CMA CGM backed by compatriot financiers, were the main reasons for the dominance.
In fact, the newbuilding markets in 2017 were comprised of ships under 3,000 teu and above 20,000 teu, leading keo nha cai cup c1 an 'hourglass-shaped' ordering structure, according keo nha cai cup c1 SITC Broker, also a CNPI member.
“That is a reflection of keo nha cai cup c1 current competition focus of shipping lines: competing on keo nha cai cup c1 main lines via big alliances, while also vying for regional market share,” it added.
The broker expects ordering in 2018 keo nha cai cup c1 remain at the same pace as in 2017, with a slight increase in ship prices, considering the rise in shipbuilding and regulatory compliance costs.
However, it also warned shipyards not keo nha cai cup c1 pin their hopes on a significant recovery.
This is because the upcoming delivery of a large amount of ultra large containerships is likely keo nha cai cup c1 reignite heated price wars among carriers, while regulatory uncertainties, such as the 2020 sulphur cap, may lead owners keo nha cai cup c1 halt their ordering plans.

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