CSSC Research Shows Signs of Recovery in Newbuild Orders

By
Mfame Team
-
4641

According to an article published in Seatrade-Maritime News, a significant drop in newbuilding orders across the three conventional merchant ship types is an obvious signal of recovery for the shipping industry, according to China Shipbuilding Industry Research Center (CSIRC).

Achieving supply-demand balance

Liu Ersen, senior analyst and offshore market research director at CSIRC, considered that a supply-demand balance has been reached for the once oversupplied shipping market – albeit a fragile balance.

“The shipping market is definitely on a path of recovery, though it would be fair to say that it needs another two to three years for the market to be completely out of the woods,” Liu told Seatrade Maritime News at Marintec China 2019 in Shanghai on Wednesday.

Clarity in investment direction

The more balanced market seen today has been due in part to cash-strapped owners losing their ability to place new orders and a tightening regulatory landscape that is demanding newbuildings to become more eco-friendly and energy efficient.

“One of the reasons for the decrease in newbuilding orders is that the investment direction for owners has been unclear, due mainly to IMO regulations,” Liu said.

With the upcoming IMO 2020 global 0.5% sulphur content cap entering into force, owners have a handful of options to choose – directly using the compliant low sulphur fuel, continue using high sulphur bunkers by installing scrubbers, or use clean gas LNG as fuel.

GHG restrictions

In addition to the IMO 2020 regulation, the IMO is further looking to enforce restrictions on greenhouse gas (GHG) emissions by 2030. These changes in regulation mean that ship specifications can no longer be based on previous simple models, but rather they will need to be equipped with more advanced equipment and technology in order to fulfil their operations as a ‘green’ ship, Liu said.

Coupled with the protracted slump in the shipbuilding sector and severe weakening of the shipping market, newbuilding orders have slowed down considerably.

In the first 10 months of 2019, a total of 46.58m dwt in newbuilding order capacity for merchant vessels was recorded, a plunge of 40% compared to the same period of 2018 and down 50% compared to the whole of 2018, according to CSIRC, a subsidiary of China State Shipbuilding Corporation (CSSC).

New record for dry bulk

New orders for dry bulk carriers were recorded at 17.97m dwt between January to October 2019, down from 44.45m dwt in 2018. For tankers, new orders came up to 16m dwt for the first 10 months of this year, down from 26.84m dwt in 2018, while containership new orders were at 610,000 teu compared to 1.26m teu.

LNG carriers, on the other hand, is generating more interest with newbuilding orders at 6.23m cu m in capacity for the first 10 months of this year and 7.97m cu m for 2018 and, compared to just 820,000 cu m back in 2008.

China’s demand for LNG carriers

CSIRC has forecast that China will demand more LNG carriers to satisfy the nation’s energy needs. In 2017, China imported 86.7m cu m of LNG requiring around 48 LNG carriers.

By 2020, China is anticipated to import 158m cu m of LNG requiring 88 LNG carriers. The numbers will increase by 2025 to 183m cu m of LNG imports requiring 101 LNG carriers and by 2030 to 222m cu m of imports needing 123 LNG carriers.

Did you subscribe to our daily newsletter?

It’s Free! Click here to Subscribe!

Source: Seatrade-MaritimeNews

684 COMMENTS

  40. Faprika olarak, Faprika eticaret ve Faprika e-ticaret hizmetlerimizle işletmenizin online satışlarını artırıyoruz. Kumsal Ajans olarak, Kumsal Ajans web tasarım ve Kumsal Ajans kurumsal web tasarım hizmetlerimizle işletmenizin çevrimiçi varlığını güçlendiriyoruz. | novasta

  41. MAFA \ Web: Elevating Your Digital Presence – MAFA \ Web is not just another digital agency; it’s a powerhouse of creativity and innovation dedicated to propelling businesses into the digital stratosphere. With a team of seasoned experts in web design, SEO, and digital marketing, MAFA \ Web crafts bespoke solutions tailored to each client’s unique needs. Whether you’re a budding startup or an established enterprise, MAFA \ Web is your trusted partner in achieving online success. From stunning website designs to strategic SEO campaigns, we’re here to help you stand out in the crowded digital landscape and reach new heights of visibility and profitability. | SEO Hocası

  43. MAFA \ Web, işletmelerin dijital dünyada öne çıkmasını sağlamak ve çevrimiçi varlıklarını güçlendirmek için kapsamlı çözümler sunan lider bir markadır. İşletmenizin dijital potansiyelini keşfetmek için bugün bizimle iletişime geçin! | creodive

  46. Webtures, under the umbrella of MAFA \ Web, strengthens businesses’ online assets. Through Webtures SEO and digital marketing services, we work towards maximizing businesses’ online successes. | MAYA

  47. Mediaclick olarak, mediaclick web tasarım ve mediaclick kurumsal web tasarım hizmetlerimizle işletmenizin dijital varlığını güçlendiriyoruz. Site Destek olarak, işletmenizin web sitesi ihtiyaçları için kapsamlı destek ve çözümler sunuyoruz. | web tasarım 34

  50. MAFA \ Web ailesi olarak, Albert Solino liderliğindeki bir diğer uzman ekibiz. Albert Solino Web Tasarım hizmetlerimizle, işletmelerin dijital dünyada güçlü bir varlık olmalarını sağlıyoruz. Albert Solino’nun liderliğinde, yenilikçi ve etkili web tasarım stratejileriyle, işletmelerin çevrimiçi hedeflerine ulaşmalarına yardımcı oluyoruz. Her bir projeye özel olarak yaklaşıyor ve işletmelerin benzersiz kimliklerini yansıtan web siteleri tasarlıyoruz. | Kumsal Ajans kurumsal web tasarım

« Older Comments Newer Comments »

Comments are closed.