Monday, May 11, 2009
Zero new ship orders now in China
Monday, 11 May 2009
According to Mr Wang Jinlian secretary-general of China Association of National Ship Industry, "At present, there is nearly no new ship order in China." Global shipping market continues downturm , freezing up new ship contracts in China, though 1Q statistics of ship industry showed growths of 42.9% and 29.8% respectively in total industrial output value and delivery value of exports.
A source close to plan-making uncovered said "The situation is complicated in China now that may be the reason why Govs put off to put forwards the working instruction of ship industrial revitalization plan."
Mr Liao Weiqun vice GM of Yangzijiang Shipbuilding Holdings said the presently hearty performance of shipbuilders actually is the hysteretic result of the previous bloom. The production cycle of a mainstream cargo ship is about 2 to 3 years much longer than other industries.
Mr Wang noted that under both effects of slumping international trades and growing difficulty in financing, new ship demands plunges, speeding up the downturn of China's ship industry.
Statistics of CANSI shows domestic new ship orders posted at 2.61 million DWT last Q4 less than 5% of the total of last year. Then, the Q1 new ship orders recorded at 0.44 million DWT down 95.6%YoY from the same period of last year. As deliveries of bulk goods slow down, shipbuilding market has turned into buyers' market from sellers. Under this situation, ship-owners ask for higher requirements for their ship model and facilities, putting weights on ship orders cancellation.
According to reports from Morgan Stanley, somewhat 70% of shipping companies purchasing funds is collected through the third party financing, that's to say, buyers are very likely to cancel orders when they felt choke in financing.
In January 31st Hongkong listed Jinhui Holding Co Ltd wrote off two ore carrier orders in Dalian Shipbuilding Industry, attributing to adding financing cost and falling ship prices. At present, mortgage loan for building ships is non-effective in China, and loans for shipbuilders are restrained by limited amount and long period examination. Thus, shipbuilders in China will eye feeble liquidity if order cancellation breaks out.
Experts said shipbuilders should shift their notices to ensure the ship delivery on schedule. It still is a good chance to reveal the structure adjustment in China ship Industry, industrial experts noted. During 2007 to 2008, domestic gross shipbuilding capacity grew by 52.2% to 28.81 million DWT and according to statistics of CANSI, there are over 3000 shipbuilders in China by last August including 431 large and medium scale builders, but most of them dealt with medium & low-end market.
At present, shipbuilders in China still can't reach out to the high-level and high value-added vessels like cruises. It's mentioned in the state released ship industrial revitalization plan to control new shipbuilding capacity, boost industrial structure adjustment, speed up independent innovation, develop high-tech and high value added vessels and enhance technology upgrade.
Source: 21st Centuries Business Herald
0 comments:
Post a Comment