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Yiu Lian shipyard (002).jpg Photo: Yui Lian Shipyard

Covid-19 presents both opportunities and challenges to Chinese shipyards

The continued Covid-19 pandemic presents a double-edged sword to Chinese shipyards.

On one side Chinese yards have returned to normal with the virus largely under control in China, bit the situation in much of the rest of the world means lower orders.

Amid the outbreak of Covid-19 globally, China is comparatively safe, we effectively controlled the virus spread, which made the Chinese shipyards are safe to run normal operation, Zhu Guiming, vice president of China Merchants Industry Yiu Lian Dockyards (Shekou), told the Capital Link International Shipping Forum China on Wednesday.

“If the shipyards in other countries cannot resume to 100% production capacity, that would be an opportunity and also a challenge to Chinese shipyards to improve service ability and establish cooperation,” Zhu continued.

Zhang Tao, deputy general of Yangtze Shipyard said, “The continued depressed market made us to close two production lines as the shortage of orders, and we have to face the pressure of increasing costs which would be the challenge to the Chinese shipyard.”

According to Swem Sun director, Cosco Shipping Heavy Industry, the ship repair market is stable in China, and local ship repair yards have enough orders in hands to maintain the normal operation. However, the newbuilding market is different, and newly received orders are declining while the global economy environment is difficult.

During the first seven months of this years, the shipbuilding output and newly received orders of Chinese shipyards both declined.

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