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Delivery delays expected as major shipyards in Zhejiang, China resume work

Zhoushan Liuheng repair and build_ (002).jpg
Close to 80 vessels face delivery delays as shipbuilding companies in China’s Zhejiang province are starting to get back to work following a near month long closure due to the coronavirus (Covid-19).

According to from the statistics from Zhejiang Association of Shipbuilding, the work resumption ratio of the major shipbuilding companies in Zhejiang province reached 85%, while the seagoing vessel builders’ work resumption ratio reached 88%.

All the provincial key shipyards in the cities of Hangzhou, Jiaxing and Ningbo resumed operations and 53% workers have returned to work.

The work resumption ratios of Taizhou and Zhoushan are 66% and 94%, while 53.5% and 65% workers have returned to work.

However, as yards get back to work in Zhejiang many vessels are expected to face delayed deliveries.

Seventeen vessels totaling in 93,000 dwt are estimated to delay the delivery for over two months; 21 vessels totaling in 101,000 dwt are estimated to delay the delivery between one and two months; and for another 41 vessels totaling in 2.06m dwt delivery dates are uncertain.

The situation has also had severe impact of new orders received by shipbuilders in the province. Only three of the 34 key seagoing vessel builders received new orders in 2020 and the remaining shipyards have not received any new orders this year.

Read all Seatrade Maritime News coverage on the impact of the coronavirus on shipping

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