Newbuilding prices are poised to go into dramatic decline following several years of strong appreciation.
This was the warning delivered by speakers to the Lloyd’s Shipping Economist Ship Finance Conference 2006 in London.Daniel Jessel, chairman of Maritime Strategies International, told the conference that the current level of newbuilding orders was “unsustainable”.
Mr Jessel said the optimistic scenario was that owners and banks would continue to finance the expansion of the newbuilding orderbook in 2007 and 2008, deferring the need for industry rationalisation.
Markus Lange, HSH Nordbank’s deputy head of shipping, also warned that newbuilding prices could slide by 20%-30% over the next five years, based on model growth theory.
This was the warning delivered by speakers to the Lloyd’s Shipping Economist Ship Finance Conference 2006 in London.Daniel Jessel, chairman of Maritime Strategies International, told the conference that the current level of newbuilding orders was “unsustainable”.
Mr Jessel said the optimistic scenario was that owners and banks would continue to finance the expansion of the newbuilding orderbook in 2007 and 2008, deferring the need for industry rationalisation.
Markus Lange, HSH Nordbank’s deputy head of shipping, also warned that newbuilding prices could slide by 20%-30% over the next five years, based on model growth theory.