Lloydslist.com reported that tensions between shipowners and shipbuilders are likely to mount in the months ahead as the shipping industry becomes ever more desperate to wipe as many unwanted new buildings as possible off the order book.

Mr Evangelos Marinakis chairman of the Capital Maritime group and Capital Product Partners said that "Yards must be flexible and accept cancellations. It must happen and the sooner they realize it the better it will be for the industry."

He added that at least USD 90 billion to USD 100 billion had been wiped off the value of the outstanding world order book, which was contracted at an estimated USD 330 billion. He said that "Much more equity is needed than when the contracts were signed, and it looks like this money will not be available."

He said that in some cases Greek shipowners collectively were responsible for more than half the orders at certain yards. Collective action could yield results but unfortunately Greek owners found it difficult to join forces.

Mr Frank Dunne chairman of the Watson Farley & Williams law firm said that "Over the next 6 to 9 months I see an unstoppable force meeting an immoveable object. We see some shipbuilders, mainly in China, being more flexible, but we are seeing tremendous inflexibility from mainly Korean yards related to agreeing delays [and] to providing discounts to make deals work."

Mr Dunne ruled out export credit agencies in shipbuilding countries as a savior, saying these were choked up with their own credits and after heavily financing the container sector were unlikely to have much capacity for other shipping sectors.

He told the Marine Money gathering that Nordea’s estimates saw the requirement to raise a further USD 50 billion to USD 55 billion of finance for each of the next three years.

(Sourced from www.lloydslist.com)