The world's three major shipbuilding countries -- China, South Korea and Japan -- face difficult market conditions due to oversupply in the shipping sector. Although all three face this common problem, the nature of their predicament and their responses vary, reflecting different industrial, financial and political contexts.
Another wave of speculative orders would worsen oversupply, depress freight rates further and put the sector under more financial pressure.
Domestic political factors will be an obstacle to addressing overcapacity in China and South Korea.
The position of major producers could be challenged by lower-cost suppliers from other Asian countries, notably the Philippines and Vietnam.
Japan and South Korea will face stronger Chinese competition as China's firms become more technologically advanced.
If demolitions of old tonnage continue, the supply-demand imbalance may correct, as long as new orders remain at their current low levels.
