03 August 2012

 China has too many ships. The glut has pushed new vessel prices to eight-year lows and caused a 49 per cent plunge in first-half orders at the nation's more than 1,500 shipbuilders. It has also tipped smaller yards into bankruptcy, and hit earnings at larger players. "It is a pretty depressing environment," said Ajay Mirchandani, a Singapore-based JPMorgan Chase & Co analyst. "You just have too many yards and too few orders, which is hurting pricing and profitability."