Figures from marine valuation provider Vessels Value revealed a general down turn in purchasing activity among its clients.
According to data on the first half of the year, ship owners spent fewer dollars on new ship building activities by 65% in the first six months of 2016 compared to the same period last year. This year, only 238 ships were ordered, against 689 last year.
Further, secondhand purchases dropped 52% to $7.1 billion from $14.8 billion in the pertinent time periods.
Meanwhile, scrapping activity increased 10% with 428 vessels sold for demolition this year versus 388 last year. Industry observers note that shipyard activity has increased this year due to the replacement of ageing fleets.