Hyundai Heavy Industries newbuilding orders slide 61pc

THE world's top shipbuilder Hyundai Heavy Industries (HHI) suffered a 61 per cent decline in new ship orders in 2009 worth a total of US$10.6 billion for ships, marine engines, offshore plants and wind power equipment.

This has prompted the company to forecast that the effects from over capacity in the container shipping sector will linger in the year.

"The global economic recovery is set to continue in 2010, but the shipbuilding industry will see the downturn lasting a considerable time due to overcapacity and weakness in shipbuilding financing," said HHI chief executive Keh Sik.

"New orders are depressed as containership owners such as CMA CGM and China Ocean Shipping Company cancelled orders and sought delays in delivery of ships already ordered," he said according to Newark's Journal of Commerce. "After five years of record highs, orders sank last year because the global economic crisis squeezed carriers with less cargo to carry for lower fees into significant losses."

Nonetheless, 2009 sales increased 6.9 per cent to a record $18 billion and may rise again in 2010 as the company works through its backlog. "However, the downturn is likely to catch up to Hyundai and other shipbuilders in the next two years," the report added.
 

Source: SchedNet