zoom Newbuilding orders of tanker ships have seen a sharp reduction, but the slowing trend needs to be sustained for the longer-term health of the market, global shipping consultancy Drewry said in its Tanker Forecaster.After numerous orders in recent years, newbuilding activity in the tanker market declined sharply in the first quarter of 2016 as only 34 vessels (2.6 million dwt) were ordered during the period, far below the hefty 368 vessels (45 million dwt) ordered in 2015.“Challenging conditions in capital markets and tight credit availability from banks have subdued new ordering. Although this will not arrest the strong fleet growth and corresponding decline in freight rates over the next two years, as many vessels are scheduled to be delivered in 2016-17, it bodes well for the future, especially if this is a reflection of cautious ordering by owners,” Drewry said.However, Drewry believes that if the current decline is just a breather after the hefty ordering in 2015, when owners increased orders to avoid stringent Tier III regulations for the vessels ordered from 1 January 2016, any increase in ordering in the coming months would hurt the longer-term outlook for the tanker market.Despite the slowdown in ordering in the first quarter of the year, the total orderbook remains high at 63.7 million dwt, 18.6% of the crude tanker fleet. About 80% of the vessels in the orderbook are scheduled to be delivered in the next two years, and we expect more than 200 crude tankers to be delivered by the end of 2017.“Newbulding prices declined during the quarter on account of the slowdown in tanker ordering, which coincided with weakness in newbuilding activity in other sectors as well, keeping prices under pressure. If ordering remains weak in the coming quarters, newbuilding prices could soften further,” said Rajesh Verma, Drewry’s lead analyst for tanker shipping.“The tanker market is expected to be oversupplied in the next two years due to hefty deliveries and relatively slow growth in the crude oil trade. If the slowdown in ordering continues further it will keep fleet growth in check in the later years, which in turn will support tonnage utilisation in the tanker market,” added Verma.
Ms. Migiro will attend the World Leaders Forum, which commemorates the 60th anniversary of the founding of the ROK, and deliver remarks on international cooperation for so-called “green growth,” UN spokesperson Michele Montas told reporters today.The Deputy Secretary-General will also address 100 of the country’s female leaders on climate change and the role of women worldwide in combating the phenomenon, and she is scheduled to give a lecture to Kyunghee University on the financial crisis and its implications for the UN’s development work.Ms. Migiro is also slated to hold a series of bilateral meetings with senior Government officials, including Prime Minister Han Seung-soo.Next Monday the Deputy Secretary-General travels to Santiago, Chile, to open the regional coordination meeting of UN agencies operating in Latin America and the Caribbean.The focus of the discussions during the meeting will be on the impact of the financial crisis and climate change on regional development, as well as a review of progress on key inter-agency activities and an examination of future work.Ms. Migiro is also expected to meet with Chilean President Michelle Bachelet, Ms. Montas said. 27 October 2008Environmental cooperation, the impact of the global financial crisis on United Nations efforts to slash poverty and the role of women in tackling climate change will be on the agenda when Deputy Secretary-General Asha-Rose Migiro heads to Seoul tomorrow for an official visit to the Republic of Korea (ROK).