Yangtze River Delta Shipbuilders Floundering

China Daily
Friday, August 17, 2012

China's Ministry of Industry and Information Technology  reports that orders in first half 2012 are down by 50.3% year-on-year.

The volume of handling orders was a mere 125.87 million DWT by the end of June, down 30.7 percent year-on-year, which can easily lead to the assumption that some shipbuilders will not be able to keep operating in the following months.

"We have not received any new orders. If the situation continues, we will have only one ship to build in the second half of this year," says Pan Haiwei, general manager of Wu Zhou Shipbuilding Industry Co Ltd in central Zhejiang.

Shipbuilders in neighboring Jiangsu province are also barely staying afloat.

Zhang Yuyong, executive deputy general manager of New Century Shipbuilding Corp in central Jiangsu, says the company had also not received any orders by August. "The orders we are handling now will be completed by April or May next year. But my prediction is that the shipbuilding market will not pick up until 2015," Zhang says.

"Meanwhile, the profits of shipbuilding are much reduced. An 80,000-ton bulk carrier, for example, was priced at $34 million (28 million euros) in 2010, but the price now is merely $23 million. That 30-percent profit is almost gone now," he says. "Of course there are shipbuilders fighting for orders. But the profits are so small that it is like chewing bones for us. Some private shipbuilding companies that have found trouble keeping their cash flow healthy definitely desire new orders. But for us, we can make it even if we are out of any new orders."

"For the low-end shipbuilding companies, the historic low in the shipping market will pose much threat to them. But for companies specializing in high-end ocean engineering, the lull means nothing," he says.





 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Rederij Groen Takes Delivery of 7-Waves

Rederij Groen’s entire SRSV fleet built by Damen Maaskant Shipyards Stellendam. Dutch offshore services company Rederij Groen has taken delivery of the 7-Waves,

De Beers Orders Specialized Ship from Kleven

Kleven signed a contract with diamond company De Beers Marine Namibia, part of De Beers Group, on the building of a highly specialized vessel for deep water mineral exploration.

FMT Options for another Towboat from Eastern

Eastern Shipbuilding Group, Inc. announce that Florida Marine Transporters, Inc. of Mandeville, La. exercised another additional 90’x32’x10’ “Canal Class” Inland

Finance

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Pipelines Pod Propulsion Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.0935 sec (11 req/sec)