Chinese Contracting: A Question Of State Backing?

By Aiswarya Lakshmi
Wednesday, February 17, 2016
Graph Source: Clarkson Research Services Limited

 Contracting at Chinese yards fell significantly in 2015, but the impact has varied greatly across different types of yard, says a report from Clarkson Research Services.

 
Many larger, state-backed builders have continued to secure a steady volume of orders, supported by domestic, state-backed owners. Meanwhile, the share of contracting at independent yards has dropped sharply, with many of these builders facing difficulties due to a lack of new orders.
 
Shipyards in China are segmented in Clarksons Research data into a number of ‘administration types’ according to ownership. ‘State-backed’ builders include the yards owned by shipbuilding groups CSSC and CSIC, as well as national government yards controlled by state-owned groups such as COSCO Shipping. 
 
Other yards can be categorised as independent, foreign owned (FO), joint venture (JV) or local government. The share of contracting accounted for by ‘state-backed’ yards in China fell significantly from 73% in 2001 to 27% in 2009, in CGT terms. Privately owned builders expanded rapidly in this period to take the majority of orders, encouraged by a state-led drive to expand shipbuilding. 
 
However, this trend has been reversed since 2010, with many independent yards now facing difficulties due to the decline in bulker ordering. State owners have supported the shipbuilding industry primarily through ordering at ‘state-backed’ yards, which took 59% of total orders at Chinese yards in 2015, in CGT terms. 
 
The government’s ‘White List’, which includes most CSSC and CSIC yards, has also broadly benefited state builders.
 
Having fallen during the shipbuilding boom, the proportion of orders placed at ‘state-backed’ yards in China has risen sharply since 2010, with Chinese state owners providing significant support. With contracting activity weak and many independent yards facing difficulties, it appears likely that this trend will continue.
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

MOL Signs Long-Term Charter with Uruguayan JV for FSRU

Japanese shipping company Mitsui O.S.K. Lines, has, through its wholly-owned subsidiary Lakler S.A., agreed to conclude a charter contract with Gas Sayago, for

Team Britannia, GAC Inks Partnership Deal

As Team Britannia prepares for its bid to break the round-the-world powerboat record later this year, GAC has been named their official shipping and logistics partner.

Libya's PFG to Lift Terminal Blockades

Petroleum Facilities Guard has blocked terminals for months. Ras Lanuf, Es Sider terminals damaged by fighting. Libya's Petroleum Facilities Guard (PFG) will

Shipbuilding

LNG: Did the Greeks Get it Wrong?

In December 2013, Alibra’s market report front page read: “When in shipping, do as the Greeks do.” At that time, Alibra was referring to the fact that 31% of the

Ithaca’s FPF-1 platform to be moved to Stella field

Ithaca Energy Inc. reports that the "FPF-1" floating production facility has completed the required inclination test as planned and departed the Remontowa shipyard in Gdansk, Poland.

Live Fish Carrier Launched at Gondan

At high tide, the vessel “MARTIN SÆLE”, the first Live Fish Carrier built by Gondan Shipyard in Figueras, was successfully launched today. Representatives of the owner of the vessel,

Ship Repair & Conversion

NASSCO Bags USS Oak Hill Modification Award

General Dynamics NASSCO-Norfolk was awarded a $42 million cost-plus-award-fee modification to a previously awarded contract for the repair and alteration for the USS Oak Hill (LSD-51).

IRClass First to Certify Indian Recycling Yards per EU Standard

IRClass is amongst the first organizations in the world to certify ship recycling yards according to EU standards as an ‘Independent Verifier’. IRClass Systems and Solutions Pvt.

Drydocks World Conforms to FPC under EU Regulation

Drydocks World, the international service provider to the shipping, offshore, oil, gas and energy sectors has successfully been certified to European Standards EN 1090 – 1 and EN 1090-2.

Ship Sales

Global Fleet Growth: A More Mature Trend?

The supply of ships into the fleet is a key determinant of vessel earnings across the shipping sectors, and world fleet growth is closely followed by everyone in the maritime industry,

South Korean Yards Face Shrinking Orderbook

The global orderbook has continued to decline in the year to date, indicating that there are diminishing levels of activity at many of the world’s shipyards, says Clarksons Research.

Slippery Orders in Ship Building

The situation of the shipyards in the world and in particular the struggles of the Korean shipbuilding industry has received a fair amount of attention in the shipping press,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0983 sec (10 req/sec)