“New orders are now like poison for shipyards - the more you take, the sooner you die” Peng Changqing, leader of Nantong COSCO KHI Ship Engineering Co., Ltd. (NACKS) said.

According to Jiangsu Economic and Information Technology Commission (JSEIC), if no more new orders feed the shipyards under current capacity, most small and medium shipyards are likely to shut down. JSEIC made such “warning” analysis according to the H1 statistics of Jiangsu shpbuilding industry.

In the first six months, Jiangsu shipyards’s newbuilding output volume and order backlog fell by 32.9% and 17.5% separately while new orders increased by 189.7%. However, the new order spree does not mean overall bull market for all shipyards. Of the listed 66 shipyards, only 23 builder secured new orders. Two out of the 13 key shipyards wins “zero order” in the period.

Short-handed new orders, global shipping recession, low ship price, growing “picky” owners and lasting weak financing support have driven more and more shipyards to the edge of the cliff.

According to Peng, “only 100 out of the 3000 shipyards can survive in the battle and most of them are face lack of capital currently .”

The “price war” for the rare new orders makes more shipbuilding enterprises confront losses.