Report reveals dramatic drop in newbuilding orders

Ship owning companies ordered vessels worth a combined $17.9 billion, down from $153.6 billion in 2008, the shipbroker said in a report.

Freight rates for commodity carriers and oil tankers averaged at least 50% less last year as a drop in world trade curtailed demand for cargoes, according to data from the London-based Baltic Exchange. Bank lending to the shipping industry shrank as ship prices declined.

Brazilian companies ordered $3.1 billion worth of ships, making them the biggest spenders. Chinese firms spent $2.9 billion and Greek shipping lines $1.8 billion.