| Overview on the Adjustment and Revitalization | | | | postponing payment for several ships. |
| Plans of Chinese Shipping Industry issued by | | | | The reason for postponing the payment or |
| Chinese government in February, 2009 to | | | | canceling the orders is that the declining of |
| supporting Chinese shipping industry: Government | | | | financial credit and the difficulty in funds for |
| encourages the financial organizations to increase | | | | buyers. In addition, China accounted for a large |
| credit funds for ship export buyers; the current | | | | part of orders in hand. |
| financial support policies of deep sea ships for | | | | With the more and more intensive of financial |
| home market will be prolonged to 2010; the | | | | crisis, the buyers are hard to fund and some |
| government should work on the policies of | | | | even deserted the ship orders. |
| encouraging the update of old ships and replacing | | | | Compared with the difficulty in delivery and |
| single-shell tankers; the present shipbuilding | | | | takeover, Chinese shipbuilding enterprises |
| enterprises should suspend the extension projects | | | | concerned more about the capitals. The most |
| of shipyards and shipways; the new added central | | | | difficulty for shipbuilding enterprises is the capital |
| investment should used to the industry | | | | turnover. The enterprises depended on the |
| revitalization and technical reform; the | | | | buyers` advance charge to maintain their capital |
| government should support the high-tech ships, | | | | turnover. If they did not receive new orders and |
| oceanographic engineering equipments and the | | | | breakthrough their capital chains, they would be |
| research on key corollary equipments. | | | | hurt deadly. Once the capital turnover problems |
| In 2008, Chinese accomplished shipbuilding output | | | | occurred, they had to loan from the banks, thus |
| was 28.81 million deadweight tonnages, rising by | | | | the operation costs added. |
| 52.2% of last year. | | | | In February 2009, Chinese government issued the |
| The newly undertook ship orders were 58.18 | | | | Adjustment and Revitalization Plans of Chinese |
| million deadweight tonnages, a reduction of 40.9% | | | | Shipping Industry, showing the Chinese |
| of last year. Ship orders in hand were 204.6 million | | | | government's determination to support shipbuilding |
| deadweight tonnages, increased by 28.7% | | | | industry. |
| compared with 2007. According to the global | | | | Chinese shipbuilding industry, obsessed by the |
| shipbuilding statistics of Clarksons Group, the | | | | difficulty in takeover, delivery and capital turnover, |
| market shares of Chinese accomplished | | | | had very great hopes of the Adjustment and |
| shipbuilding output, newly undertook ship orders | | | | Revitalization Plans of Chinese Shipping Industry. |
| and ship orders in hand accounted for 29.5%, | | | | Chinese shipbuilding industry benefited most from |
| 3707% and 35.5% respectively in the world, in | | | | the preferential policies on credit loan and tax. |
| which Chinese accomplished shipbuilding output and | | | | Description |
| ship orders in hand kept a fast growth for six | | | | From 2004, Chinese shipbuilding industry saw |
| consecutive years and led to the three indicators | | | | sustainable and rapid development, which |
| standing the second place in the world. | | | | attracted massive capitals to shipbuilding industry, |
| With the transfer of international financial crisis to | | | | leading to the surplus of shipbuilding capacity and |
| the real economy, Chinese shipbuilding industry has | | | | the tardy of creativity. According to the statistics, |
| felt the coming of strikes. | | | | the yield capacity of Chinese shipbuilding industry |
| Because the strikes of international financial crisis | | | | was more than 60 million tons by the end of |
| on Chinese shipbuilding industry began to reflect in | | | | 2008, over the actual demands and belonging to |
| September of 2008, the whole performance of | | | | serious surplus of yield capacity. |
| Chinese shipbuilding industry in 2008 was sound. In | | | | Opportunities still exists in Chinese market. On the |
| 2008, the newly undertook ship orders were | | | | one hand, Chinese domestic demands are huge. |
| 58.18 million deadweight tonnages and only 2.61 | | | | Massive domestic old ships need reform. Some |
| million deadweight tonnages in the fourth quarter, | | | | ships in inland rivers and lakes can not meet the |
| less than 5% of the whole year's. Chinese | | | | demands and need upgrade because of low |
| accomplished shipbuilding output exceeded the | | | | technology and discharge capacity. Chinese |
| new undertook orders from October of 2008, | | | | shipbuilding industry can also better cooperate with |
| first consecutive reduction of monthly orders in | | | | pelagic fishing and the exploitation and construction |
| hand over the past five years. It is predicted that | | | | industry of deep sea oil and gas. Meanwhile, the |
| Chinese accomplished shipbuilding output in 2009 | | | | shipbuilding costs in China are lower than the |
| will be over 40 million deadweight tonnages and | | | | major competitors of Japan and South Korea. |
| 56 million deadweight tonnages of orders in hand | | | | Under the present economic situation, the |
| of last year's was scheduled to accomplish in | | | | competitions among Chinese, Japan and South |
| 2009. The intervals are about 16 million | | | | Korea are fiercer because of supply exceeding |
| deadweight tonnages. It is predicted that the | | | | demands in the international market. If you want |
| newly undertook orders are only about 20 to 30 | | | | to receive more orders, you should provide high |
| million deadweight tonnages, half or more | | | | cost performance of the products. The most |
| reduction year on year. At present, Chinese ship | | | | advantage for Chinese shipbuilding enterprises lies |
| orders in hand declined from 205 million to million | | | | at their prices. |
| deadweight tonnages in 2007 to 160 million | | | | International financial crisis brings difficulties for |
| deadweight tonnages. | | | | Chinese shipbuilding industry, but it also brings the |
| With the influences of the international economic | | | | replacement of lagging yield capacity, |
| depressions, the depression of shipping market | | | | concentration of shipbuilding capacity and the |
| and the degeneration of financial environment led | | | | improvement of research and marketing abilities. |
| to three difficulties for Chinese shipbuilding | | | | With more and more obvious of the advantages |
| industry, including difficulty in takeover, difficulty in | | | | in Chinese shipbuilding industry, the international |
| delivery and difficulty in the capital turnover. | | | | orders are transferring fast to China. At present, |
| During the prosperous period of shipping market, | | | | China has acquired the objective conditions as the |
| the delivery can be finished even though the | | | | shipbuilding center in the world: huge ship markets, |
| existence of imperfection. At present, the buyers | | | | low costs, governments` policy supports and |
| of ships usually put forward a variety of stringent | | | | abundant raw materials, especially the huge ship |
| requirements, postponing the delivery or canceling | | | | markets and low costs will become the |
| the orders. The phenomenon of postponing the | | | | advantages ahead of Japan and South Korea |
| delivery or canceling the orders has appeared | | | | The author wrote this report by investigating into |
| recently. From the end of 2008 and the beginning | | | | Chinese Shipbuilding Industry and citing abundant |
| of 2009, Cosco Corp. (Singapore) Ltd announced | | | | valuable second-hand information. |
| their buyers canceling four- ship orders and | | | | |