Excess Vessel Capacity and Manufacturing Capacity, and Weak Dry Bulk Market Conditions

「The shipbuilding business has been most significantly affected by fluctuations in demand for seaborne cargo resulting from global economic trends, the supply of vessels to carry that cargo, and particularly developments in the dry bulk market. However, as previously noted, the business was transferred to Shin Kurushima Dockyard Co., Ltd., providing one solution to consolidation and realignment in the shipbuilding industry, with the shipbuilding business to be continued under that company's group.」

「The bulk carrier shipping market weakened from the beginning of 2020, and business negotiations have been suspended since April. Although some indicators showed periods of increase, charter rates remain at difficult levels and newbuilding prices have not recovered.」

「Under these circumstances, the company is marketing as its core vessel types the new 82,000-dwt Panamax bulk carrier and new 64,000-dwt Ultramax bulk carrier, both with improved fuel efficiency through the application of the new NOx Tier III emission regulations and H-CSR (Harmonized Common Structural Rules), as well as the new 41,000-dwt Handysize bulk carrier, which applies the new regulations and has been designed with a wider beam and shallow draft to increase cargo capacity.」

「Under these circumstances, the company is marketing as its core vessel types the new 82,000-dwt Panamax bulk carrier and new 64,000-dwt Ultramax bulk carrier, both with improved fuel efficiency through the application of the new NOx Tier III emission regulations and H-CSR (Harmonized Common Structural Rules), as well as the new 41,000-dwt Handysize bulk carrier, which applies the new regulations and has been designed with a wider beam and shallow draft to increase cargo capacity. Meanwhile, the company is also working to diversify its product range by expanding its sales activities beyond general merchant vessels to include ferries, specialized vessels and workboats.」

「The business environment surrounding the group remains difficult, with the structural excess of vessel capacity and construction facilities continuing in the shipbuilding business. The bulk carrier shipping market has not entered a full recovery trend, and the prolonged slump in newbuilding prices continues. Meanwhile, moves toward consolidation and restructuring in the shipbuilding business are emerging in Japan and overseas.」

「The business environment surrounding the group remains difficult, with the structural excess of vessel capacity and construction facilities continuing in the shipbuilding business, while China and South Korea provide policy support to their competing shipbuilding industries. Although the bulk carrier shipping market has been on a gradual recovery trend since April 2019, charter rates have not yet entered a full recovery trend and newbuilding prices remain depressed.」

「The business environment surrounding the group remains difficult, with the structural excess of vessel capacity and construction facilities continuing in the shipbuilding business, while China and South Korea provide policy support to their shipbuilding industries. The bulk carrier shipping market weakened from the beginning of 2019. Although it has been recovering gradually since April, charter rates remain at difficult levels, and newbuilding prices have not recovered.」

「In the shipbuilding business, the structural excess of vessel capacity and construction facilities continues. Although the bulk carrier shipping market was on a gradual recovery trend during 2018, it weakened from the beginning of 2019. The shipbuilding market has not recovered sufficiently, and the order-taking environment remains difficult.」

「The business environment surrounding the group remains difficult, with the structural excess of vessel capacity and construction facilities continuing in the shipbuilding business. In the bulk carrier shipping market, charter rates are generally on a gradual recovery trend, although they vary by vessel type. Expectations for further recovery are rising, and signs are emerging that newbuilding demand may be stimulated by compliance with new environmental regulations.」

「The business environment surrounding the group remains difficult, with the structural excess of vessel capacity and construction facilities continuing in the shipbuilding business. In the bulk carrier shipping market, charter rates are generally on a recovery trend, although they vary by vessel type. Expectations for further recovery are rising, and signs are emerging that newbuilding demand may be stimulated by compliance with new environmental regulations.」

「The business environment surrounding the group remains difficult, with the structural excess of vessel capacity and construction facilities continuing in the shipbuilding business. In the bulk carrier shipping market, charter rates are showing a slight recovery trend, although they vary by vessel type. Expectations for further recovery are rising, and signs are emerging that newbuilding demand may be stimulated by the introduction of new regulations.」

「Looking at shipping market conditions for bulk carriers during the third quarter, cargo movements, particularly iron ore and coal shipments to China, remained relatively firm. Charter rates and the BDI rose moderately from the second quarter, despite repeated fluctuations. However, substantial spare vessel capacity remains, demand for newbuild vessels has not been stimulated, and the shipbuilding market has not yet recovered sufficiently.」

「During the second quarter, Chinese steel production turned upward after an adjustment period. Demand for bulk carriers generally increased due to higher imports of steelmaking raw materials, longer sourcing distances resulting from the selection of higher-quality raw materials, and continued high grain import volumes. Charter rates, a key indicator of shipping market conditions, also recovered steadily. The BDI has begun to rise, but substantial spare capacity for newbuild vessels remains, and downward pressure from market conditions has prevented a sufficient recovery.」

「The business environment surrounding the group remains characterized by structural excess vessel capacity and construction facilities in the shipbuilding business. During the first quarter, newbuilding prices for bulk carriers temporarily rose as a result of speculative orders, mainly from some European shipowners, but this increase was not sustained and prices remained depressed.」

「In the business environment for the shipbuilding business, the structural oversupply of vessel capacity and construction facilities continues. Although the Baltic Dry Index (BDI), a freight market indicator for bulk carriers, has recovered from its historic slump, the loose supply-demand balance for newbuild vessels has become a permanent condition and newbuilding prices remain depressed.」

「In the shipbuilding business, the structural oversupply of vessel capacity and construction facilities continues. Although the Baltic Dry Index (BDI), a freight market indicator for bulk carriers, is recovering from its historic slump, the loose supply-demand balance for newbuild vessels has become a permanent condition and newbuilding prices remain depressed.」

「In the shipbuilding business, the structural oversupply of vessel capacity and construction facilities continues. Although the Baltic Dry Index (BDI), a freight market indicator for bulk carriers, is recovering from its historic slump, the loose supply-demand balance for newbuild vessels has become a permanent condition and newbuilding prices remain depressed.」

「The structural oversupply of vessel capacity and manufacturing facilities continues. Although freight market conditions for bulk carriers are beginning to recover from their historic slump, they remain at low levels, while the loose supply-demand balance for newbuild bulk carriers has become a permanent condition and newbuilding prices remain depressed.」

「In the shipbuilding business, the structural oversupply of vessel capacity and manufacturing facilities continues. In particular, the historic slump in the bulker market has made the loose supply-demand balance for newbuild bulk carriers a permanent condition, and newbuilding prices remain depressed.」