- China’s ship production is forecasted to rise to 45 million deadweight tons in 2024, marking a 6.3 percent increase from the previous year, where it accounted for over half of the global total.
- Chinese shipbuilders are anticipated to secure new orders for approximately 55 million tons this year, down from 71.2 million tons in 2023. However, orders in hand are expected to surpass 130 million tons.
- China’s shipyards produce various types of vessels, including cargo, containers, crude oil, and cruises, reflecting its status as a major ship-building nation.
- Collaboration along the supply chain, risk control measures regarding raw material costs and exchange rates, and rigorous studies of global maritime transportation and shipbuilding markets are recommended for supporting production, operations, sector development, and government decision-making by the CANSI.
- Rising total orders and the share of high-tech vessels pose challenges in production complexity and operational pressure, alongside increased risk of volatility in steel, foreign exchange, and shipping markets.
China’s Shipbuilding Outlook
According to recent data, China is projected to ramp up its ship production to 45 million deadweight tons this year, marking a 6.3 percent increase from last year. China’s shipbuilding output accounted for over half of the global total in the previous year. These insights were provided by recent reports.
The country’s shipbuilders are expected to receive new orders for about 55 million tons in 2024, compared with 71.2 million in 2023, when output made up nearly 67 percent of new tonnage worldwide, data released by the China Association of the National Shipbuilding Industry showed today. Orders in hand will reach over 130 million tons.
New tonnage from Chinese firms jumped 12 percent last year, while new orders surged 56 percent, according to industry ministry figures. Already-held orders tallied 139.4 million, up 32 percent and accounting for 55 percent of the world’s total.
China’s Shipbuilding Dominance And Industry Challenges
Last year, the Chinese shipbuilding sector ranked first globally by new tonnage, new orders, and orders in hand for the 14th consecutive year, according to the CANSI.
As one of the world’s major ship-building nations, China’s many shipyards and shipbuilders turn out various kinds of vessels, including for cargo, containers, crude oil, and cruises.
The association said that with the increase in the total orders and the share taken up by high-tech vessels, production, and operational complexity have also increased, piling pressure on shipbuilders over delivery guarantees. In addition, the risk of volatility in the steel, foreign exchange, and shipping markets has risen, leading to greater uncertainty about the market environment.
Enhancing Efficiency And Mitigating Risks
The CANSI said shipbuilders should strengthen their intelligentization and digital transformation, optimize production processes, and enhance the efficiency of final assembly and construction. They should also strengthen production plan management, improve their supply chains, and ensure high-quality and on-time deliveries.
The association also suggested shipbuilders strengthen collaboration along the supply chain and control the risks associated with raw material costs and exchange rates by signing long-term purchase agreements with steelmakers, using futures as a hedging tool, and penning forward exchange settlement contracts with financial institutions, and other means.
Studies of the global maritime transportation and shipbuilding markets should also be toughened to support production and operations, the sector’s healthy development, and government decision-making, the CANSI noted.
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Source: yicaiglobal
