A new report from Singapore investment bank OCBC gives an idea at the scale of losses across the Chinese shipbuilding sector.
The report focuses on just Singapore-listed Yangzijiang Shipbuilding, China’s largest private yard, but can be seen as ominous for many other yards in the People’s Republic who are less commercially savvy than Yangzijiang.
Out of the 123 vessels in Yangzijiang’s orderbook, OCBC estimates that only 40 are profitable while the rest are “challenged” in terms of profitability.
Yangzijiang, which has tended to focus on boxships and bulkers, is looking to diversify its orderbook to add more LNG carriers, OCBC reported. The yard delivered its first two 27,500 cu m LNG carriers last year.