Orders For Chinese Ships Have Collapsed

china shipbuilding

Photo: China Photos/Getty Images

Chinese shipbuilders secured 182 orders in the first six months of the year, down from 561 orders a year ago, according to Want China Times.The article which cited a report by Clarkson Research Group said 46 of 180 shipbuilding companies didn’t receive any orders at all this year.

China’s largest private shipbuilder Rongsheng has failed to win any orders so far this year. And 28 per cent of Chinese shipyards have received no orders since 2009.

Earlier this year reports emerged that China had failed to win orders from Greek shippers that control the world’s largest merchant fleet. And this was after Chinese premiere Wen Jiabao’s visit to Greece in 2010 when a a $5 billion Sino-Greek shipping finance fund was created to boost the sale of Chinese built ships to Greek shipping companies.

The excess supply has pushed new ship prices to 8-year lows. And concerns are that the situation won’t improve until the global economy and global trade improve.

And Chinese shipbuilders have been hit harder than their South Korean counterparts according to Bloomberg. South Korean shipyards have benefited from higher demand for offshore units and drill ships which are more complicated to make.

China has been consolidating its shipbuilding industry so that the 10 largest would control 70 per cent of its shipbuilding.

Don’t Miss: SocGen’s Presentation On The Slowing State Of The Chinese Economy >

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