Jiangsu-based New Times Shipbuilding, one of China’s largest privately owned shipyards, is awaiting government approval for a new drydock with broker Gibson reporting Q1 2027 deliveries will open up once the yard gets the green light. The yard has already built up a credible waiting list of owners for suezmax tankers, with Gibson suggesting owners are willing to pay in the region of $80m to secure a prized slot.
Asian shipyards are enjoying very long orderbooks, with owners anxious to hear about new capacity coming on stream. At last week’s Geneva Dry conference, shipowners polled suggested that China was likely to be the main source of any shipyard expansion in the coming years.
The Review of Maritime Transport 2023, published in September by the United Nations Conference on Trade and Development (UNCTAD), urged shipyards to expand quickly to aid with shipping’s green transition.
“Shipyard capacity is currently facing constraints. Tanker and dry bulk owners are anticipating long waiting times and high building prices. Increasing shipbuilding capacity is crucial to ensure that shipping meets global demand and its sustainability goals,” the UNCTAD report stated.
China cemented its position as the top shipbuilding nation last year thanks to a formidable leap forward in newbuilding orders from 52.9m dwt to 78.8 million dwt bringing its orderbook from about 123m dwt to about 161m dwt and its marketshare from 50.6% to 58.1%, according to data from BRS.
After several years of capacity reduction, last year saw several attempts to reopen some Chinese facilities.
Hengli Heavy Industries Group, a subsidiary of the Hengli Group, is running the assets of STX Dalian. The yard restarted in January 2023.
In August 2023, Wuhu Shipyard took over the land and facilities of the former Samjin Shipbuilding Industry part of the automobile group Chery.
Kouan Shipyard has been going through a reorganisation process since 2019 and is currently building blocks and ships for the account of third-party shipbuilders including Dajin, Taizhou Changqin and Taizhou Changyue.
Jiangxi New Jiangzhou Shipbuilding lndustry was established on March 31, 2023. The main investors are Qinshi (Xiamen) Trading and Jiangsu Yangchuan Investment Development. Qinshi (Xiamen) is the parent company of a listed company, Bestway Marine & Energy Technology, whereas Jiangsu Yangchuan is a subsidiary of Yangzijiang Shipbuilding Group. The yard has signed contracts for stainless steel tankers with Chinese buyers.
Private company Fujian Guanhai Shipbuilding, which stopped production in 2013 and went bankrupt in 2019, has now been taken over by Fujian’s private steel giant Jinshenglan Group and renamed the Fujian Songmin Group.
Quanzhou Shipyard, which was established in 2004 and entered bankruptcy in 2019, reached an agreement with a local government-owned company to invest and reorganise the yard. In September 2023, a ceremony was held for the resumption of work and production.
Since the start of 2023, annual global yard capacity has increased by 6m cgt to 59m cgt, according to a new report published by Danish Ship Finance today.
“Additional active second-tier yards in China have been the main contributor to this growth,” the report noted.
