A worker walks in front of a ship under construction at the Daewoo Shipbuilding & Marine Engineering Co. yard in Geoje, South Korea, in this March 5, 2008, file photo. Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co., two of the world’s three largest shipyards, fell after Merrill Lynch & Co. lowered their ratings on concern of slower orders in the second half. --Bloomberg

HONG KONG—Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co., two of the world’s three largest shipyards, fell after Merrill Lynch & Co. lowered their ratings on concern of slower orders in the second half.

Hyundai Heavy, the world’s largest shipbuilder, dropped 2.7 percent to 359,500 won during morning trading in Seoul Tuesday after Merrill Lynch cut the stock to a “neutral” from a “buy.” Daewoo Shipbuilding, the No. 3, slid 5.9 percent to 41,400 won. The stock is the worst performer among the 200 biggest companies in South Korea’s Kospi index.

“It is just a matter of time before the shrinking global-order pie starts affecting the order flow of Korean shipbuilders,” analysts Sanjeev Rana and Chris Kim wrote in a report dated Tuesday. They also cited smaller-than-expected increases in vessel prices.

Shipyards in South Korea, the world’s largest shipbuilding nation, won almost half of the $191.3 billion invested in new vessels last year. Hyundai Heavy and rivals have been increasing capacity as they work through almost four years of order backlog.

Samsung Heavy Industries Co., the world’s second-largest shipbuilder, declined 0.8 percent to 38,750 won. Merrill Lynch kept the stock at a “buy” because of its offshore business. (Bloomberg)

Rerouting around Naia begins May 15

STARTING May 15, cargo trucks, buses and tricycles plying the Domestic Road and Andrews Avenue leading to the Manila Domestic Airport and the Ninoy Aquino International Airport (Naia) are advised to take alternate routes on Epifanio de los Santos Avenue (Edsa), Roxas Boulevard or the Diosdado Macapagal Avenue, as authorities are in the process of easing traffic in these highly congested areas around the premier airport.

A NEW Caledonian shipping firm has placed an ordered for a high-speed aluminum catamaran vessel from FBMA Marine Inc., a unit of the Aboitiz Transport System Corp.

HONG KONG—Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co., two of the world’s three largest shipyards, fell after Merrill Lynch & Co. lowered their ratings on concern of slower orders in the second half.

LONDON—The Baltic Dry index, a measure of shipping costs for commodities, declined for the first time this month as demand weakened on national holidays in Asia and Europe.

TOKYO—Mitsui O.S.K. Lines Ltd., Japan’s second-largest shipping line by sales, will exceed its first-half operating profit forecast by “several billion yen” as it charges more to transport coal and iron ore.