According to the report “Global Marine Trends 2030” jointly issued by LR, QinetiQ and University of Strathclyde, China will be the biggest beneficiaries of global shipping by owning over one third of global shipping capacit. Meanwhile, China will be the absolute leader of global shiipbuilding by winning about 28.0m to 32.0m GT new orders more anuually. The future sees so bright while the current situations are a little anxious.
In the firist quarter  newbuilding market has shown mild improvement against the same period of last year, however, global shipbuilding industry still stagnate in the winter season while the new spring has walking closer in China.
Since the beginning of last year, the lagged effects on China shipbuilding has been more and more prominent with new order, orderbook and newbuilding output all decline greatly year on year. Shipyards are began to confronted with delivery dilemma, new order drought and poor margins. Its it estimated that over 300 shipbuilders in China has seen a loss in last year, climing by 150% against last year.
In the past few golden years, China has surpassed Korea and Japan as the leading shipbuilder country globally with three shipbuilding indices topping No.1. However, why “world No. 1” fail to generate profits for ship enterprises?
We think the problem lies in product structure. Chinese shipyards mostly center on major ship types such as bulker, ore carrier and containerships, which are vulnerable to ship fluctuations. Once the shipping market goes down, the profits for shipbuilders will be greatly stricken.
In fact, the global shipbuilding market has been profound changes while we are celebrating our “world No.1”. With global economy development, stricter standards and emerging new technologies, world’s demand has turn to high-tech, high value-added vessels such as LNG carriers, special ships and offshore plants. Besides, the importance attached on green design, safety and environmental friendliness has been much more higher nowadays.
On the other hand, Japan and Korea have walked earlier and faster on the way of developing new technology after master market changes. Japanese shipyards have successfully developed some eco-design, high value-added ships while Korean and Singapore shipbuilders have occupied over 50% of global offshore market. All of them are in better conditions than our China shipyards.
Chinese shipyards would have to change the wheel for their voyage for current survival and long-term development. On one side, shipyards should change product structure and realize transformation by developing technologies and strengthening innovation. On the other side, shipbuilders should choose there right products according to their advantages and grow as the leader of segment market.
As usual, difficulties always brews more opportunities. More ship enterprises and design institutes are trying to find new cooperation partners in the recession. It is a good opportunity for Chinese shipbuilders to enhance independent core technology by the cooperation with advance ship companies in America and Europe.
Diversified development is another way for Chinese shipyards in market downturn. They can take advantage of their competitiveness in equipment manufacture to develop multiple business.
China still has a long and bumpy way to go to become the real No.1.