- DNV has set up a specialized team in China to support the local shipbuilding industry, focusing on tankers and bulk carriers.
- China is experiencing a shipbuilding boom with increased demand for bulk carriers and tankers due to new decarbonization and digitalization needs.
- DNV provides expertise across various shipbuilding aspects, from design to cybersecurity, ensuring quality and compliance with new regulations.
DNV reports that it has formed a team of experts in China to help the local shipbuilding industry and owners with newbuild orders. The focus is on tankers and bulk carriers, the two ship types expected to grow rapidly in the coming years.
China’s Shipbuilding Boom
Following the global recovery from the pandemic, China has seen an extraordinary shipbuilding boom. While containerships dominated new orders in recent years, there is now a surge in demand for tankers and bulk carriers, driven by new decarbonization and digitalization requirements.
To support this growth, DNV has created a team of experts to assist Chinese shipbuilders in adopting new technologies and ensuring quality standards.
DNV Supports Transformation of Global Fleet
Jing Yang Sunny Li, DNV’s Ship Type Expert for tankers in China explains,“Based on our market forecast, we estimate that more than 1,700 tankers and 2,900 bulk carriers will need to be replaced in the coming 5 years.” China plays a crucial role in these newbuild projects, with 66% of bulk carrier and 63% of tanker orders placed in the country.
He adds,“According to Clarksons, 66% of bulk carrier and 63% of oil tanker newbuild orders, measured in gross tonnage, are placed in China, while in 2023 close to 80% of the bulker orders were awarded to Chinese yards.”
The shipping industry faces challenges from new fuels, regulations, and efficiency-enhancing technologies. According to Li,“The emergence of new fuels, in particular LNG, methanol and ammonia, along with new efficiency-enhancing technologies and new rules and regulations have led to new levels of sophistication. This calls for closer cooperation among all stakeholders to ensure quality, improved efficiency and innovation. We also want DNV to be the trusted voice in China in tackling this global transformation.”
New Shipyards Enter the Market
Established shipyards in China are struggling to keep up with the increasing orders, leading to new yards entering the market. DNV supports these yards with its expertise to ensure quality.
“Current delivery dates for new orders start at the end of 2027 or the beginning of 2028. Therefore, we are seeing new shipyards entering the bulker and tanker newbuild market. This year they have taken many orders from Greek tanker owners. The question for DNV has been: how can we support our customers to assure quality, so the vessels delivered are up to the owners’ expectations?” says Li.
Simplified Access to DNV Expertise
DNV has made it easier for Chinese shipbuilders to access their expertise. This helps streamline the complex process of implementing new technologies and ensures high-quality standards.
“At the same time we never compromise on quality,” Li points out. “So we have to utilize our expertise to focus on where we foresee potential risk and manage it from the beginning. The key is to cover all steps of the process, from pre-contract services to newbuild class approval, including technical workshops.”
DNV Supports Major Newbuild Tanker Projects
DNV has supported the construction of shuttle tankers for Knutsen NYK Offshore Tankers at Zhoushan and North Sea Shipping at Dalian yard. These tankers are designed for Brazilian waters and must meet Petrobras standards. Although the contract for one project was signed in 2021, DNV’s support began in 2017, and the ship was delivered in 2023.
Xiangyu shipyard is building ten chemical tankers to DNV class. Several very large crude carriers are also being constructed at DSIC and NTS. Stena is developing methanol-fueled medium-range chemical tankers at GSI yard.
In 2023, numerous Ultramax and Kamsarmax bulk carriers were ordered. For 2024, there is an increase in orders for Newcastlemax and very large ore carriers (VLOCs), including sophisticated dual-fuel VLOCs with wind-assisted propulsion systems ordered by Shangdong Shipping and unique VLOCs for Winning International Group, designed to transport bauxite and iron ore from a new mining project in Simandou, West Africa.
DNV Forms Expert Team for Chinese Shipbuilding
DNV has set up a specialized team in China with 11 experts to support tankers and bulk carriers, covering all key disciplines and bringing extensive experience.
“Establishing the bulker and tanker expert team for China enables us to provide our expertise in a better, more focused manner,” explains Li.
His colleague Can Chun Cai, Ship Type Expert for bulk carriers at DNV in Shanghai, describes the composition of the group,“The team consists of 11 plan approval experts including ship type experts for tankers and bulkers. We cover all relevant disciplines, such as project management, hull, stability, piping, fire safety, electrical, control system, machinery, cyber security and alternative fuels including containment systems. Each team member has at least 15 years of working experience in various ship size segments.”
DNV experts initially address questions from designers, yards, and owners directly. For more complex issues, they escalate them to ensure timely and thorough responses.
Huge Demand for Bulk Carriers
DNV has issued over 15 approvals for bulk carrier designs in China, focusing on dual-fuel innovations. They assist with rule compliance, review specifications, and share expertise through various platforms.
“In the past three years, we have issued more than 15 approval-in-principle statements for bulker designs in China, mainly focusing on innovative dual-fuel designs using LNG, methanol and ammonia for various bulker sizes,” says Cai.
“We help our customers understand and comply with the latest rules and regulations; we review their specifications and provide feedback and recommendations; and we share expertise and best practices through workshops, forums, courses and external conferences.”
Meeting Decarbonization Goals
DNV tackles complex ship design issues involving multiple technical fields. As shipyards work towards decarbonization goals, they focus on optimizing hull lines for better efficiency, which can affect stability. This requires both hydrodynamic and structural expertise. Additionally, shipyards aim to control costs by optimizing steel weight, while ensuring compliance with regulations.
DNV’s interdisciplinary team helps manage these challenges by providing expert guidance and ensuring that all technical aspects are considered.
Rapid Response for Clients
Can Chun Cai highlights the importance of fast, efficient responses to customer inquiries. He further adds,“Whether it is regulatory updates, clarifying rules, making suggestions, issuing approvals-in-principle or engaging in joint development projects to help ensure future-proof ship design, our customers can easily find our contact information and get in touch with us directly. Our tanker and bulker expert team is always accessible to provide timely support.”
Innovative VLOC Designs
“For 325,000 dwt VLOCs, including ‘WinningMax’ ships to be built for Winning International Group at the Qingdao Beihai and Dalian Hengli shipyards, as well as second-generation Guaibamax vessels to be built at Qingdao Beihai shipyard, the expert team has cooperated with cargo owners, shipowners, yards and designers since the launch of the project in 2018,” says Cai.
Experts have optimized the design of the WinningMax and Guaibamax VLOCs for their specific operational needs. The WinningMax VLOC is tailored for efficient bauxite transfer and includes features like methanol fuel-readiness, a shaft generator, and EEDI Phase 3 compliance. The Guaibamax VLOC also emphasizes decarbonization with a methanol dual-fuel system, a shaft generator, and five rotor sails.
Effective Collaboration with Designers
Designers value DNV’s continuous and timely support in developing energy-saving measures and addressing operational needs.
“The designs consider new energy-saving measures and technologies, special features to address the trading and operation requirements,” explains Zhang Cheng Shun, General Manager of the design company CSDC.
“DNV is the leading class society for VLOCs and for alternative fuel solutions. Many thanks to the DNV project team for their continuous, valuable and timely support on the design.”
Wu Xiao Kang from SDARI praises DNV for its comprehensive expertise and support in developing reliable standards. He adds,“We as designers appreciate DNV always standing front of stage to develop reliable rules and standards and helping us find practical solutions. Our second-generation 400k dwt VLOC design was the first design in the market fully approved for loading iron ore fines that may liquefy, and DNV’s timely rules provided an established design standard. DNV also took the lead in communicating with the flag state to obtain acceptance.”
DNV Leads in Ship Cybersecurity Solutions
DNV is helping China’s shipbuilders address new cybersecurity challenges by offering expertise and workshops. All vessels contracted after July 1, 2024, must meet the new IACS cybersecurity standards (UR E26/27).
“So we share our experience from Oslo and Hamburg and Shanghai with our local people who speak the local language, and they will hold a workshop with the local customer to explain the new requirements and help them identify the potential gap or risk, and how it can be managed,” Li explains.
DNV’s cybersecurity expertise is highly regarded in China. He adds,“Our cyber security experts are highly regarded by local customers. I am very confident that if you went to a shipyard and asked for the best cyber security expert from class societies, one of our top two experts would be mentioned.”
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Source: DNV
