China’s shipyards registered a good increase in newly received shipbuilding orders and orderbook backlog in the first 10 months of this year, according to figures from China Association of the National Shipbuilding Industry (Cansi).
This year up until 30 October, Chinese shipyards across the country received new orders with tonnage totalling 53.73m dwt, up 15.7% compared to the same period of 2013.
The orderbook on hand during the 10-month period stood at 153.55m dwt, an increase of 30.3% over the previous corresponding period, data from Cansi showed. Completed vessel tonnage from the shipyards, however, dipped by 18.2% year-on-year to 28.47m dwt.
Orders from foreign shipowners continued to take up the lion’s share of businesses at Chinese yards. In the first 10 months, China exported 24.48m dwt of vessel tonnage, down 16.5% compared to a year ago. Newbuilding orders from overseas came up to 50.29m dwt, an increase of 16.9% year-on-year while existing orderbook was recorded at 146.33m dwt, up 41.9%.
Figures from 87 main shipyards monitored by Cansi also showed improved numbers in shipbuilding activities, but they failed to translate to higher profits due to low margins and high costs.
In the value of completed jobs, the 87 yards recorded RMB330bn ($53.84bn) in total, an increase of 9.8% year-on-year. Out of the total value, shipbuilding accounted for RMB161bn, shipbuilding equipment took up RMB26bn, ship repair amounted to RMB10.6bn, while the remaining went to miscellaneous work.
In terms of earnings, the 87 yards achieved a total 10-month revenue of RMB240bn, up 11.6% compared to year-ago figures. Their combined profit, however, dropped by 9.3% to RMB4.3bn due mainly to thin margins coupled with high operating expenditures.
Among the 87 yards, Cansi further monitored 54 of them where most shipyard jobs have been concentrated. In the first 10 months, the 54 leading yards inked new orders with a combined tonnage of 50.23m dwt, up 14.9% year-on-year and taking up 93.5% of the country’s market share.
The existing orderbook for the 54 leading yards was reported at 151.17m dwt, up 37.9% and accounting for 98.5% of the total market share. The leading yards also completed vessel tonnage of 26.49m dwt, down 7.6% and taking up 93% of the market share.
China’s shipbuilding sector is presently experiencing a recession where consolidation is taking place, tightening yard capacity and edging out speculative and bottom-rung yards. From more than 3,000 shipyards across the country back in early-2010, there are now only around 300 active yards and a further downsizing of the number is expected.
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Source Seatrade-global.com
