Posted on 18 Aug 2022
China's shipbuilding enterprises received new vessels orders amounting to 25.72 million deadweight tons (DWT) over January-July, lower by 43.1% on year, according to new data from China Association of National Shipbuilding Industry (CANSI).
Chinese shipyards concluded new orders equivalent to 3.26 million DWT in July, plunging 53% on year and down 31.7% on month, according to the association.
The retreat in orders was partly due to the shrinking demand for new ships with the moderate slowdown in global trade, according to a Shanghai-based industry watcher.
The ongoing Russia-Ukraine conflict, the rapid rise in inflation worldwide and rising costs of living have all weakened overall demand for new vessels, she said, pointing out that inflation in the US had touched the country's highest in 40 years and that price pressure had led to a slowdown in consumer spending. This in turn, had lowered the need to transport goods.
In this year's first seven months, Chinese shipbuilders completed building vessels totalling 20.85 million DWT, down 13.8% on year. In July alone, the tonnage completed came in at 2.35 million DWT, down 27.9% on year or 44.3% lower than in June, the CANSI data showed.
The declines in new orders received by the Chinese shipyards saw their order backlog rise but at a slower pace, growing by 15.6% on year to 103.7 million DWT by the end of July, according to the CANSI data.
Over January-July, China's shipbuilding industry maintained its top position in the global shipbuilding sector, with the country's new orders received, order backlog and completed vessels accounting for 51.1%, 48.1% and 44.4% of worldwide totals respectively, CANSI said.
Source:Mysteel Global
