China's shipbuilding has become more polarized

The shipping industry continues to be sluggish, and the Chinese shipbuilding industry is not optimistic.

According to a report released recently by the Shanghai International Shipping Research Center, the ship market will gradually enter the down channel. With the continuous launch of shipping capacity and the lower than expected performance of the shipping market, shipping companies’ willingness to invest in ships has dropped significantly. The report shows that in the second quarter of 2014, the shipbuilding company's willingness index for investment in ships was 91.37 points, a decrease of 14.68 points from the previous quarter. It fell below the economic demarcation line and entered the recession zone, which will directly affect the shipbuilding industry.

China Shipping (21.87, 0.280, 1.30%) Deputy Director of the Information Industry Department of Industry Association Tan Naifen recently stated that it is expected that the number of ships delivered in China in 2014 and 2015 will be significantly reduced, and the shipbuilding industry will be consolidated. The global capacity surplus will be eased, and the shipowner’s Profitability will increase.

However, relevant persons of Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. told the Morning Post that the current shipbuilding industry is also divided and the general shipping market is in excess, but some green ships and ships with high technical content still have a market at present.

The person also believes that the current polarization of the shipbuilding industry is already evident, and at least several thousand of the boat factories in Jiangsu and Zhejiang have closed.

Recently, Australia’s Curtis LNG (liquefied natural gas) transport project shipowners and chartered party British Natural Gas Group held the “Australia Curtis LNG Transport Project Signing Ceremony” in Hong Kong.

All four ships of Australia's Curtis LNG transport project were built by Hudong Zhonghua. The ship holds a capacity of 174,000 cubic meters, a length of 290 meters, a ship width of 46.95 meters, a depth of 26.25 meters, and a design speed of 19.5 knots (nautical miles per hour). The vessel is scheduled to be completed and delivered for use in September 2017. Delivered in January 2018, Ship 3 is scheduled to be delivered in June 2018, and Ship 4 is scheduled to be delivered in January 2019.

The relevant person of Hudong-Zhonghua told the Morning Post that at present, the company has successfully delivered six LNG ships and has a hand-held order for ten ships. It is the only large-scale LNG ship construction company in China. The signing of the above-mentioned Australian project has enabled Hudong Zhonghua to hold orders for 14 LNG ships.

According to public information, the LNG ship is an internationally recognized "three high" product with high technology, difficulty, and high added value. It is a "super-sea frozen car" and has been hailed as the "crown jewel in the world" for shipbuilding. Currently, only Some shipyards in the United States, Japan, South Korea, and a few countries in Europe can build.