Greater China

Startling statistics on China’s yards’ plight

London: Startling statistics from London’s Clarkson Research Services show the real plight Chinese shipbuilders face.

Only 153 Chinese shipyards still had an orderbook at the end of 2012. This compares to 243 yards with ships on order at the end of 2010, the research arm of the world’s largest broker noted.

As of start 2013, 1,832 vessels of 109.4m dwt were on order at Chinese shipyards, a sharp fall of 47.3% in dwt terms when compared to the orderbook as of start 2010.

Those receiving orders shrunk too. 149 shipyards received new orders in 2010, but during 2012 only 69 shipyards managed to take any contracts.

“[As] orderbooks decline, it is unlikely that local yards will be able to access any sort of state financial aid,” Clarkson noted.

There are now 90 fewer yards with an orderbook than at the start of 2010.

Concluding, Clarkson reported: “The weak bulk contracting environment means that plenty of other yards risk running out of work. Those yards which are most successful at continuing the diversification process begun in 2011 and 2012 will be the yards most likely to endure.”  [30/01/13]

Commenting on the figures, Matthew Flynn, Hong Kong-based managing director of shipbuilding database, Worldyards, told SinoShip News: “This year will distinguish the committed tougher-than-steel-itself players from the tourists who were expecting that shipbuilding was going to be a sunny paradise.”  [31/01/13]

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