According to the latest statistics, shipbuilding industry in China has minimum orders this year and will be through the worst year since 10 years.

 

Some shipbrokers said that due to over capacity, financing difficulty and low freight, shipowners do not want to order new vessels. One shipbroker from Hong Kong expressed that in last few years, the total tonnage of vessels increased, leading to capacity growth exceeding cargo transport growth, which brings a lot of pressure on freight rate and strikes dry bulk ships, oil tanker and container ships.

 

The depression of economy in Europe and North America and decelerated growth in China also impact the demand for new ships. Every state has tightened up money policy after financial crisis in 2008, so it is hard for shipowners to refinance and order new ships.

 

Depression of economy not only affects shipbuilding industry in China but also South Korea and Japan, the two shipbuilding power. Ministry of Knowledge Economy in South Korea said that export of ships and oversea constructure facility will decrease to 43 billion dollars from last year’s record of 54.5 billion dollars. It is the first annual decrease since 19 years.