China’s Jiangsu shipyards record jump in first half newbuilding orders

From January to June 2016, Jiangsu province shipbuilders received 42 newbuilding orders for a total of 3.21m dwt, taking a 15.5% of the global share and 19.9% of China’s share. The new tonnage received represented an increase of 65.8% year-on-year.

The province’s leading 18 shipbuilders took the lion’s share of the new orders, landing 35 newbuilding orders for 3.16m dwt, a surge of 131% year-on-year.

In the first quarter this year, Jiangsu shipbuilders only won orders for eight ships for 46,400 dwt. The new orders came in aggressively in April with 22 new ships of 2.21m dwt in combined capacity.

The Jiangsu authority counted more than 600 shipyards in the province during the first quarter. And during this three-month period, only 165 have delivered new ships and 157 started construction on new vessels, leaving more than 400 with no work.

Compared to the same period of 2015, there were 295 shipyards that started construction on newbuilding orders.

Some of the notable shipyards in Jiangsu province are Yangzi Xinfu Shipbuilding, New Hantong Ship Heavy Industry, Hongqiang Heavy Industry, New Century Shipbuilding, Taizhou Kouan Shipbuilding, and Taizhou Sanfu Ship Engineering.

Lasy October, the Jiangsu authority ordered a halt to 23 yard facility expansion and conversion projects by various shipbuilders in an attempt to curb the overcapacity that is impacting the market.