China’s ship-building industry put up a good performance across domestic and exports segments in Jan-Jul’21.
The industry delivered new ship-building orders worth 45.22 million dead weight tonne (dwt) over the period, a huge y-o-y increase of 223%, as per data released by the China Shipbuilding Industry Association.
In the month of Jul’21, orders held in hand amounted to 89.67 million dwt, an increase of 19% y-o-y.
Over Jan-Jul’21, orders worth 24.18 million dwt were completed, an increase of 21% over the same period in CY’20.
Exports
China’s completed ship-building export orders over Jan-Jul’21 comprised 22.653 million dwt, an increase of 22% over Jan-Jul’20. Total export orders over the same period were at 40.312 million dwt, an upward spurt of 219.4% y-o-y.
In Jul’21, orders for exports were at 7.117 million dwt, an increase of 13.7% over Jul’20.
Exported ships accounted for 94%, 89% and 88% of China’s shipbuilding completions, new orders, and orders held in hand, respectively over the period under review.
Shipbuilding completions, new orders received, and hand-held orders from Jan-Jul’21, accounted for 46%, 52% and 46% of the world market share respectively.
Contribution of 50 major ship-builders
Over the same period, 50 major shipbuilding companies completed projects worth 23.61 million dwt, up 19% y-o-y.
These companies undertook orders for new ships of 43.85 million dwt, an y-o-y increase of 218%. At the end of Jul’21, orders held were 87.87 million dwt, up 20% y-o-y.
These majors completed exports of 22.62 million dwt, a y-o-y increase of 23%; accepted orders worth 39.85 million dwt for exports, a y-o-y increase of 218%. Jul’21 orders for ship exports stood at 78.45 million dwt, y-o-y rise of 15%.
Exported ships accounted for 96%, 91% and 89% of their completed construction, new orders, and hand-held orders respectively.
These companies also completed over Jan-Jul’21 repairs of 1,874 vessels, up 3% y-o-y.
Global shipbuilding orders to increase in 2021
Global shipbuilding orders have been declining since 2018, with orders dropping to 19.2 million CGT in 2020 from 29 million CGT in 2019. But Korea has fared well, with its domestic shipbuilding industry securing 100% of the global orders placed for 21 LNG carriers; 100% of the global orders placed for VLCCs; and 10 out of 16 orders placed for large container ships. According to Clarkson Research, global shipbuilding orders in 2021 may reach 23.8 million CGT, up by 23.7% from last year. Among the orders, LNG carriers and container vessels are likely to account for 3.2 million CGT and 6.3 million CGT, respectively.
Unit: 10,000 compensated gross tons, CGT
Source: Korea Economic Daily
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