Early this month, executives from major eight yards in Jiangsu, China gathered to discuss about decreasing new order, profits, etc., and to come up with measures to overcome recent crisis.
President Ren Yuan Lin, Yangzijiang Shipbuilding pointed out, plunging order contract by troubled global economy is the biggest problem. According to official from Dayang Shipbuilding, it now secures 37 vessels, however, with 31 deliveries scheduled this year, decreasing Dayang's orderbook is worrisome.
Besides, order cancellation made by owners is also one of huge problems.
Those who attended the meeting forecast that shipbuilding industry would not see up-phase until after three-to-five years, considering current global economy and Chinese shipbuilding industry.
However, some said that slowing down the rapidly scaling up Chinese shipbuilding industry for some time would be necessary. A sudden growth of Chinese shipbuilders, in numerical terms, has caused oversupply, which would be large enough to accommodate 100% of global demand.
Also, they expected that there would surely be large-size M&A due to lack of human resources, rising cost, etc., and establishment of industrial clusters.
It was pointed out that many Chinese yards construct the same-size and same-type vessels, which should be up-graded and more diversified.
Hence, a small-and-medium size yard Sainty Marine's key product is containership, Nantong Mingde Heavy Industry is highly acknowledged by its car carrier and chemical carrier. While New Century and Yangzijiang are now pushing forward to enter offshore market.