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China the world’s biggest shipbuilder by volume is seeing its shipping boom come to an end. 90 per cent of China’s shipyards have received no orders this year and some 28 per cent have received none since the end of 2009, according to Clarkson Plc (CKN), the world’s largest ship broker.
Now, Bloomberg is reporting that China has failed to win orders from Greek shippers that control the world’s biggest merchant fleet.
This comes after Premier Wen Jiabao visited Greece in 2010 when a $5 billion Sino-Greek shipping finance fund was created to boost the sale of Chinese built ships to Greek shipping companies. John Coustas president of Danaos Corp. told Bloomberg “
“It was a time-consuming painful exercise …was a political statement that was not really matched by the will of the banking system over there to proceed with the actual money.”
Earlier this year China decided to consolidate its about 2,000 shipbuilding companies so that the 10 largest would control 70 per cent of its shipbuilding. And in Zhejiang, the largest manufacturing base for small to medium-sized dry docks in the world, about 80 per cent of shipyards have suspended operations or are functioning at half their capacity Reuters reports.
Only the largest Chinese shipyards like China Shipbuilding Industry Corp and China Rongsheng Heavy Industries are expected to survive the consolidation.