Global ship orders drop 52% in Q3

24 October 2011 (Last Updated October 24th, 2011 18:30)

Global shipbuilding orders in the third quarter of 2011 dropped more than 50% compared to Q2 of this year because of financial constraint in Europe, according to a report by Clarkson.

Global shipbuilding orders in the third quarter of 2011 dropped more than 50% compared to Q2 of this year because of financial constraint in Europe, according to a report by Clarkson.

The report revealed global ship orders in the third quarter fell to five million compensated gross tons (CGTs).

During Q1 of this year ship orders stood at 8.3 million CGTs, rising to 10.4 million CGTs in Q2, which plummeted due to oversupply in ship market, shrinking shipping finance, debt problems in European countries and delayed economic recovery.

During the first nine months of 2011, ship orders reached 23.56 million CGTs, a drop of 22.3% compared to corresponding period in 2010, according to chosun.com.

The Korean shipbuilders secured 52% of the orders of 2.47 million CGTs while China orders accounted for 27.8% of global orders with 1.37 million CGTs, followed by Japan with 10.5% of ship orders.