China’s shipbuilding industry will likely maintain robust growth this year, driven by soaring demand for dual fuel-powered containerships, oil tankers and specialized vessels, market watchers and business executives said. In the first five months of this year, orders for new vessels placed with the country’s shipyards surged 49.5% year-on-year, according to the China Association of the National Shipbuilding Industry (CANSI). Orders for new vessels added up to 26.45 million deadweight tons (DWT) during the period, with a global market share of more than 67%. In recent months, Chinese shipyards have received new orders for not only containerships and bulk vessels but also liquefied natural gas (LNG) and vehicle carriers, and ocean engineering vessels, said Li Yanqing, Secretary General of CANSI.
Two key factors explain the rise in new orders: many countries are implementing the new decarbonization regulations; and existing ships are aging, said Li. This has led carmakers, shipping companies and energy firms to place more orders for the next-generation of environmentally friendly vessels. China’s shipbuilding output grew by more than 15% year-on-year to 16.47 million DWT between January and May, accounting for more than 48% of the world’s total, CANSI data showed. By the end of May, Chinese shipyards' orders totaled 117.99 million DWT, up 15.5% year-on-year, claiming nearly 52% of the world’s market share.
Gao Wenbao, President of Nantong CIMC Sinopacific Offshore and Engineering Co in Jiangsu province, said the company has already scheduled orders until 2026. A subsidiary of Shenzhen-headquartered China International Marine Containers (Group) Co, CIMC Sinopacific has received orders for eight new ships over the past several weeks. Gao said the company is currently in discussions with various entities for over 10 dual fuel-powered ships and refueling vessels. “At present, all major shipyards in China are operating at full capacity, resulting in a significant backlog of orders,” he said. “Shipowners may experience delays in securing an early schedule for their orders, if they don’t place them quickly enough.”
Although it is difficult to predict how long the current upcycle would last, the demand for large containerships is expected to stabilize in the future. There will, however, still be some growth in demand for large LNG and LPG carriers in the years to come, said Dong Liwan, Professor of Shipbuilding at Shanghai Maritime University. The value of China’s ship exports rose by more than 21% year-on-year to USD8.86 billion in the January-May period, said CANSI, as reported by the China Daily.
