Chinese Shipbuilders' Production Likely 50% Down by Year's End

MarineLink.com
Tuesday, October 15, 2013
Huangpu River: Photo Wiki CCL

Chinese shipbuilders have been sailing toward bankruptcy in recent years, with China trying to consolidate the industry and bail it out from the woe of overcapacity. With delays in deliveries, order cancellations and price decreases for newly-built vessels, shipbuilding firms have been in a slump since late 2008, when the global financial system was in free fall, reports a recent Xihua Insight article.

Statistics from China Association of National Shipbuilding Industry showed in the first half of 2013, 80 major enterprises made a combined business revenue of 120.3 billion yuan (19.6 billion U.S. dollars), down 18.5 percent year on year. Total profit dropped 53.6 percent to 3.58 billion yuan. In terms of production, it is estimated there will be a fall of around 50 percent in 2013, according to a Ministry of Finance report in August cited by Xinhua.

China's shipbuilding industry was in a "golden age" in 2004, when shipyards, especially those with private investment like Rongsheng, mushroomed as a symbol of the country's booming economy. Before 2000, the number of shipyards in China were in the hundreds. The industry quickly ballooned to more than 3,000 by 2007 under a "get-rich-quick" mindset. China entered the world's top three in terms of shipbuilding, together with Japan and the Republic of Korea (ROK). Now, the industry is a shadow of its former self.

According to the provincial commission of economy and information technology, cited by Xinhua Insight, ship completion and current orders in Jiangsu dropped by 32.9 percent and 17.5 percent year on year respectively in the first half of 2013. Among 66 shipbuilding enterprises, only 23 received new orders.

Source: Xinhua Insight

Maritime Today


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

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

People & Company News

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

DSC Dredge Receives President’s E-Star Award

DSC Dredge, LLC, based in Reserve, La., has received the 2016 President’s “E-Star” Award for exports.   In a ceremony held on May 16, 2016, at the U.S. Department

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

Contracts

Diana Charters Out Two Bulkers

Diana Shipping Inc. today announced that, through a separate wholly-owned subsidiary, it entered into a time charter contract with Bunge S.A., Geneva, for one of its Panamax dry bulk vessels,

Haven Marine Signs Service Contract with Svitzer

Haven Marine Services informs it has signed a five year contract with Svitzer which will see the yard service the requirements of Svitzer’s vessels within the Bristol Channel and Irish Sea areas.

Portugal PM Warns Lisbon Dock Workers to End Strike

Portugal's prime minister warned Lisbon dock workers on Friday that his patience was running out after a strike that has lasted a month, paralysing the city's ports.

Shipbuilding

CBP, AMO Unveils New Interceptor Vessel

U.S. Customs and Border Protection (CBP) Air and Marine Operations (AMO) and SAFE Boat International celebrated the unveiling of AMO’s newest coastal interceptor vessel (CIV) Thursday.

Seaspan Acquires Eighth 14000 TEU Vessel

Seaspan Corporation (NYSE:SSW) announced today that it accepted delivery of a 14000 TEU containership, the YM Width. The new containership, which was constructed at CSBC Corporation,

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

Finance

Defense Appropriations Bill Includes $1 Bln for US Icebreaker

The U.S. Senate Appropriations Committee’s FY2017 Defense Appropriations Bill has included $1 billion in funding to accelerate construction of a new polar icebreaker for the U.

Higher Capesize Demand Pushes up Baltic Index

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Friday buoyed by higher demand for capesize vessels.

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

 
 
Navigation Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
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: 0.1009 sec (10 req/sec)