Japan's Feb new ship orders down 58% on higher costs

In February, Japan's new ship orders from home and abroad declined for the third month by 57.5% on year to 413,200 gross tonnes (GT) or in 10 vessels, according to the data released by Japan Ship Exporters' Association (JSEA) on March 16. The negotiations between shipbuilders and owners are taking more time on the anticipation of further rise in raw material prices, a JSEA official said.

February ship orders were also down 23.7% on month, and the official explained that rising production costs need to be shifted to vessel prices. "But the rise in materials - mainly steel plates - is so rapid and significant that shipbuilders need more time to figure out their offer