Shipbuilding cancellations don’t translate in a decrease of the orderbook says Worldyards

With the dry bulk shipping industry in dire straits and everybody hoping for a market rebound as soon as possible, many eyes are turning towards shipbuilding activity, or rather shipbuilding inactivity, thus ship cancellations. The equation is simple: less tonnage on the market, rates increase. This of course, provided that cargoes will start flowing back into the market. Some analysts and researchers have estimated that ship cancellations are now at about 200 vessels, which is equal to a little more than 2 percent of the global orderbook. With credit availability deteriorating and some yards facing liquidity problems, not to mention the poor state of the freight market, analysts suggest that this percentage could jump to anywhere between 30 and 50%.