New Ship Orders Will Hit $60 Billion Mark in 2004

In the first eight months of 2004, shipowners have ordered $45 billion in oil tankers, bulk carriers, and containerships. Between 1995 and 2002, the average ship orders were around $27 billion per year.

The cost of two million-barrel tankers (VLCCs) has now topped $100 million for the first time since 1992. In the first seven months of 2004, tanker scrapping has slumped 40 percent with only 60 ships on the world market being pushed out of service, as operators hang onto older tankers due to high freight rates.

Shipbuilding is expected to continue as the demand for LNG tankers rises, as another 120 LNG tankers will be needed by 2010 to meet worldwide demand.