Asian shipbuilders expect an unhappy 2016

Singapore

FOR many Asian shipyards, 2015 was a brutal year. This year could be even worse.

With oil prices forecast to fall as low as US$15 a barrel and China's growth slowing, orders for offshore projects and new vessels are hard to come by for Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries, the world's three biggest shipbuilders. As the industry struggles with overcapacity and low rates, customers have been pushing back delivery schedules or cancelling orders outright, a trend likely to continue this year.