Yards toy with adding capacity

Amid a record ordering boom – and with an eye on fleet renewal ahead of IMO 2050 – shipbuilders are looking at expansion for the first time in a decade.

MSI Director Stuart Nicoll states that “physical capacity tends not to disappear as yards are either mothballed or put to work on other forms of heavy industry, effective capacity is a lot easier and quicker to bring back online when markets improve, though one limiting factor can be the availability of a trained workforce“. Read more views at Splash247

Shipyards face cancellations over weak freight market and interest rates

Yards have built up a large order backlog, with deliveries scheduled up until 2026. This means that construction of most vessels on order will start in the next two years, when buyers will start to pay the remaining ship price. MSI is currently expecting to see an increase in cancellations amid rising interest rates and slowing economic growth. Read more at Lloydslist.