IThe lead time is anywhere between 1 year to 3 years for the delivery of a new ship. Orders are placed in anticipation of the ship’s future use. In many cases, companies even enter into a charter agreement in advance, which makes it absolutely imperative and critical for the shipyard to deliver within specified deadlines. Thus, delay in delivery not only affects the owner, but also the reputation of the yard where it was put on order, not to mention the financial aftermath. Hence, companies prefer to place orders with established shipyards with a good track record.
Indian Shipyards have an orderbook of close to 260 ships with aggregate value in the region of Rs.280 billion. Approximately, Rs.200 billion are export orders, while Rs.80 billion is for domestic shipping companies.
Majority of the orders placed at Indian shipyards are from European ship owners. Indian shipyards have built offshore supply vessels for leading offshore companies such as Deep Sea Supply, Bourbon Offshore, Lamnalco Group, Halul Offshore, Maridive Oil, etc. They have also built ships for leading international cargo carriers. Cochin Shipyard has built ships for Clipper Group. In addition, Indian shipyards have new-building orders from Precious Shipping of Singapore, Reederei Vogemann and Opielok Reederei of Germany, etc.