Chinese Yards Experience High Shipbuilding Orders of Over 200% in First Half

3 mins read  Sealuminati TeamJuly 14, 2021

Chinese shipbuilding enters into a new phase with a surge in volumes for both newly received, and already in hand newbuilding orders in 2021 first half. The Chinese ship-making industry has recorded an order volume growth of 38.24 dwt in the initial six months itself, reflecting a 206.8% growth over the virus-prone last year.

Approximately half the orders in terms of tonnage were placed at China State Shipbuilding Corp (CSSC) operated yards. The state-owned largest shipbuilding corporation in asset terms said that " It has already hit its 2021 annual order target in just six months, with 18.4m dwt (232 vessels) contracted in January to June, exceeding the amount a year ago by almost threefold."

CSSC, in the first six months, delivered a total of 102 vessels which makes 9.172 m dwt. This delivery pace accounted for the company's annual growth by 52.8% and 57.3% respectively, of the syndicate's annual target. Moreover, newbuilding output was 20.92m dwt, and a constant increase of 19% is observed year on year.

CSSC has deftly secured orders of bulk carriers, containerships, oil tankers, and gas carriers in batch in the first half. The company for now kept on delivering high-end multi-type vessels, that are separately designed and constructed by the syndicates.

As the recent reports of June end suggest, the in-hand order book documented 86.6m dwt, 21.8% surge compared to the 2020 volume surge. This data also accounts for 32.44 m CGT of oceangoing vessels.

While the rebound of new building orders is strongly recovering the economy, surging steel prices are putting the boom at a halt. Yards in the first half were troubled with the steel industry pushing them to mark up their products, even after knowing that can cut down business.

Statistics piled up by China's shipbuilding association -Cansi has recorded the South Korean ship-making industry jump of 750% compared to 2020. S. Korea's shipbuilding yards found 11m CGT orders in the 2021 first half, while their Japanese rivals listed 1.9m CGT making a 14.3% growth.

The price index of Clarksons Newbuilduing raised to 138 points as of June 2021 from 126 points in 2020 end. This change in the index is the highest recorded since the year 2014.