From January to June 2015, China’s shipbuilders received new orders amounting to 11.19m dwt of tonnage, representing a sharp 72.6% drop compared to the same period of last year, according to figures released by China Association of The National Shipbuilding Industry (Cansi).
Cansi projected that China would have received 20-25m dwt of newbuilding tonnage by the end of this year, pointing to a decrease of 58.3-66.6% compared to the 59.95m dwt of new tonnage orders won in 2014. Last year, the new orders received were already lower by 14.2% compared to 2013.
In completed tonnage during the first six months of 2015, Chinese yards produced 18.53m dwt of newbuilding capacity, an increase of 6.3% compared to the previous corresponding period.
As at the end of June 2015, Chinese shipyards sat on an orderbook of 138.07m dwt, down 9.2% year-on-year and down 7.6% from the end of 2014.
Cansi highlighted that 88 main shipyards completed a combined newbuilding tonnage valued at RMB205.6bn ($33.1m) during the six-month period, up 6.5% year-on-year.
The 88 main yards also generated a total revenue of RMB141bn, an increase of 4.5%, and a combined profit of RMB2.47bn, a decrease of 3.5%.
The shipbuilding association said the fall in profit was due to a combination of factors including low newbuilding prices, rising labour and material costs, the Chinese currency maintaining its strength, and owners delaying and amending contracts.
“At present the shipbuilding industry continues to remain in the doldrums and international competition is heating up,” Cansi commented. “We recommend that the relevant national authorities will carry on existing policies that are helping the industry, and speed up the implementation of other new policies.”
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