The influx of new orders at shipbuilding yards in China has dropped by 29 percent during the first half of this year, standing at 11.5 million DWT, resuming the downward trend.
At the end of June, the order backlog stood at 82.24 million DWT, down 30.5% year on year, according to the figures released by China Association of the National Shipbuilding Industry (CANSI).
Export orders fell as well during the period with 10.15 million in secured DWT order equivalent, a drop of 29.1 percent.
With respect to ship type, bulk carriers, oil tankers and containerships still dominate as the key export products at Chinese shipyards. Asian countries remain the main buyer of Chinese ships accounting for 44.8 percent of total exports during H1 of 2017, followed by Europe with 21.4 percent or USD 2.3 billion worth of orders and finally Oceania with 14.7 percent share.
On the other hand, Chinese shipyards completed 26.54 million DWT in the first six months of the year, up by 57.4 percent.
The drop in order intake comes amid intensifying headwinds in the global shipping market suffering from tonnage oversupply along with low crude oil prices slashing the shipowners’ appetite for newbuildings. Further challenges in the shipbuilding sector are expected thus hindering healthy recovery, according to CANSI.
Further challenges in the shipbuilding sector are expected in the short-term, thus hindering healthy recovery, according to CANSI.
World Maritime News Staff