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 April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Norwegian Car Carriers to Buy Two from Hyundai Samho

Oslo-listed Norwegian Car Carriers (NOCC) has signed a contract with Hyundai Samho Heavy Industries for the construction of two 6500 ceu Pure Car Truck Carrier (OCTCs).

Boatbuilding in China

While much of the focus on coverage of the Chinese shipbuilding industry is on big shipbuilding, Maritime Reporter switches gears this month to explore activities in select boatbuilding sectors.

HMS Prince of Wales Bridge Sets Sail

The bridge section of the second Queen Elizabeth Class aircraft carrier set sail today from Glasgow on its first sea voyage to Rosyth.   Upper Block 07 is where

Finance

Norwegian Car Carriers to Buy Two from Hyundai Samho

Oslo-listed Norwegian Car Carriers (NOCC) has signed a contract with Hyundai Samho Heavy Industries for the construction of two 6500 ceu Pure Car Truck Carrier (OCTCs).

Long Beach, Los Angeles ports host forum to gather input

More than 100 cargo owners, trucking firm leaders, longshore labor, marine terminals and other goods movement industry representatives turned out Wednesday for

Venezuela Probes ex-minister accused of corruption in Ferry Deals

A former minister in President Nicolas Maduro's government denied in an interview published on Friday accusations of corruption during the purchase of three

 
 
Maritime Contracts Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators 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: 0.1424 sec (7 req/sec)