Despite massive newbuilding campaigns from owners, shipyards continue to come under pressure with input prices surging.

South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) has reportedly seen its debt ratio increase to 547 percent at the end of the first quarter because of a number of issues, including the cancellation of Russian ship orders, soaring raw material price increases and recent strikes by subcontractors. 

In a statement, the shipyard said two out of three Sovcomflot LNG orders have been cancelled this year due to Russia’s invasion of Ukraine, hitting cashflows, while steel plate prices doubled over the past two years.