China: Shipbuilding Orders Dropped Significantly

Chinese shipbuilders’ order backlog dropped significantly this year from the end of last year due mainly to prolonged global economic uncertainties, reports Yonhap News Agency citing government data revealed on Monday.

The Chinese Ministry of Industry and Information Technology said in its report the country’s shipbuilders held a combined backlog of orders totaling 169 million deadweight tons (DWTs) at the end of September, down 14.5 percent compared to the end of December.

Meanwhile, China’s shipbuilding capacity rose 18.3 percent on-year to 51 million DWTs during the January-September period.

During the same period, the Chinese shipbuilders’ new orders fell 42.8 percent on-year to 29 million DWTs, the ministry said.

Experts attributed the drop to ongoing turmoil in the global economy. China rose as the world’s top shipbuilder in 2009, outpacing South Korea in the number of new orders received and order backlogs as its builders attracted new customers with relatively cheaper prices.

South Korea, however, regained its position of having the most new shipbuilding orders in the first half of this year by securing deals for large, value-added vessels, according to global market researcher Clarkson Research Services.

South Korean firms have continued to focus on high-priced vessels such as liquefied natural gas (LNG) carriers and offshore facilities.

The China Ship Marketing Research Center said earlier China’s shipbuilders need to raise their technical and management skills in order to stay competitive amid increased volatility in the world economy.

(Bernama)