Despite the overcapacity problem still looming over the global shipping market, Chinese shipbuilding sector is showing some signs of recovery.

China Association of National Shipbuilding Industry (CANSI) presented better figures for 2013 indicating that recent restructuring efforts, cuts in overcapacity and upgrades improved the sector’s performance.

According to the Information and Technology Ministry’s report, Chinese shipbuilders scored around 70 million deadweight tons in new ship orders, an increase of 242% YoY. Most of the newbuild orders, approx 80%, were secured by the country’s top 20 shipyards, up 5.5 percent compared to the last year.

And perhaps, the most interesting thing that was stated in the report is the fact that Chinese yards had won orders for sophisticated vessels, six liquified natural gas carriers (LNGs) and four very large gas carriers (VLGCs).

Despite the progress, people familiar with the mater believe that hard times for the industry are far from over, as it grapples with a recession caused by waning demand and higher costs, following the financial crisis of 2008, reports the Xinhua News Agency.

Zhang Guangqin, president of the China Association of the National Shipbuilding Industry, said: “it will take at least another five years for the influence of overcapacity to be eased“.

SBT Staff, January 23, 2014