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Indiaexportnews.com

Chinese shipyards set to face capacity glut

  08.12.2009    

China, the world’s second-biggest shipbuilding nation, will face a capacity glut from 2011 after the yards work through existing orders and shipping lines bring down orders for newbuildings, according to Exim News Service.
Poor demand will be a ‘major problem’ for three more years, the official said here.
Global shipbuilding capacity may rise to 200 million DWT annually in a few years, while demand is estimated to touch 156 million tonnes at best, a figure it averaged over the last six years, he explained.
China plans to announce new rules to encourage shipbuilding companies to merge before the end of the year to pare growth in the industry.
By 2015, China’s 10 biggest shipbuilders may account for more than 70 per cent of all vessels built in the nation, rising from 53 per cent last year, he added.



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