- Chinese shipbuilding market has improved in 2017 but has not substantially recovered
After a long period of adjustment, the year 2017 has been the year of recovery of the international shipping market, and China’s shipbuilding market has also improved. However, the shipbuilding industry has not substantially recovered.
According to the data from the China Association of Shipbuilding Industry (hereinafter referred to as the Ship Association), in 2017, the country’s total shipbuilding capacity was 42.68 million dwt, which was a year-on-year increase of 20.9%; and the new ship order volume was 33.73 million dwt, an increase of 60.1% year-on-year.
China’s three major indicators of shipbuilding are ranked first in the world in terms of international market share. Among them, Chinese shipbuilding completions, new orders received, and hand-held orders account for 41.9%, 45.5%, and 44.6% of the global total, respectively.
As of the end of 2017, China’s handheld ship orders amounted to 87.23 million dwt, a year-on-year decrease of 12.4%. As of 2017, China’s handheld ship orders have declined for four consecutive years, and most ship companies can only maintain a workload of around one year.
From the international market point of view, compared with 2006-2010, the global new ship trading volume in 2017 is still at a low level.
According to Clarkson’s research data, in 2017, the global new ship orders totaled 902 ships and 72.8 million dwt, which was an increase compared to 2016.
However, in the past 20 years, there were only less than 1,000 new ship orders for three years.
Global handheld ship orders are also decreasing. In 2017, the number of handheld orders worldwide was 3,158 and 196.9 million dwt. Since 2004, hand-held orders have dropped below 200 million dwt for the first time.
A number of experts in the shipbuilding industry all told the interface news reporter that the increase in the number of orders for new ships cannot be used as the standard for market recovery. The current market situation is more complex than ever. Shipbuilding companies need to formulate correct business strategies and enhance their competitiveness. .
In the competition between China, Japan and South Korea shipbuilding industry, China temporarily has the upper hand. According to data from the China Shipbuilding Industry Economic Research Center, the China Shipbuilding Supply Side Climate Index (CTSI) returned to No. 1 again in December 2017, and the growth of new orders was the main reason for the rise of the index. The last time China topped the list was in May 2014.
In 2017, there is a clear trend of convergence of new orders from China to dominant companies. The top ten companies in the country accounted for 73.4% of the total new orders, and completed 58.3% of the country’s shipbuilding. In 2017, four shipping companies in China entered the top ten global new orders, and five companies entered the top ten in the world.
It is worth noting that the contradiction between the price of new ships and the cost of inversion was highlighted in 2017. Due to such factors as low market demand, low prices, rising raw material prices, and lack of operating rates of shipbuilding companies, the overall cost of shipbuilding companies has risen rapidly, and the profitability of shipbuilding companies has dropped significantly. In the first 11 months of 2017, the main business revenue of 1407 shipbuilding enterprises above designated size decreased by 8.2% year-on-year, and total profit decreased by 15.9% year-on-year.
With the development of the global economy tending to be stable, the shipping market is expected to maintain steady and positive influence. The new shipping market in 2018 is expected to remain active.
Since mid-January 2018, Chinese shipping companies have confirmed orders for 78 new ships, involving many types of ships, including bulk carriers, oil tankers, container ships, LNG ships, and offshore workers.
According to the ship association’s forecast, the global new ship turnover in 2018 will be between 70 million and 75 million dwt. The number of new orders received may increase from 2017, and the new ship price may also increase slightly. It is expected that the volume of large-scale vessels will drop back in 2018, and a small number of special-purpose ship markets such as luxury cruise ships, car carriers and passenger rovers are still worthy of attention.
On the other hand, global oil and gas development will continue to pick up the floating production platform, and offshore wind farm construction and maintenance equipment and LNG-related equipment will also receive constant attention.
The Ship Association stated that in order to further enhance the competitiveness of the market, Chinese shipping companies need to improve their innovation capabilities, develop green and environmentally friendly ships that meet market demands, build brand ship models, develop shipbuilding and marine equipment manufacturing industries, and tourism, fishery, renewable energy, and deep seas. A combination of space and mineral resources development. At the same time, ship companies must also promote lean management and reduce costs.
- Green Ship Technology China 2018 Summit Held in Shanghai
From April 19 to 20, the China Green 2020 Summit was held in Shanghai. Experts from both home and abroad conducted extensive exchanges on the energy conservation and emissions reduction targets of the shipbuilding industry. Representatives from the International Maritime Organization (IMO), the European Union, and the US Coast Guard were introduced separately. The contents of the relevant laws and regulations, the implementation and upgrade of the policies and regulations of the China Ship Emission Control Zone have received widespread attention from the participants.
In recent years, IMO has successively issued a number of laws and regulations relating to energy-saving and emission-reduction. It has established an overall framework for the sustainable development of the global shipbuilding industry, and has also become a guideline for the development of green ship technology in shipping and shipbuilding industries in various countries. According to Lucas, the representative of the IMO Marine Environment Protection Committee, this year, IMO will conduct a comprehensive assessment of the implementation of the first phase of the ship’s energy efficiency design index (EEDI) based on the data of more than 2,000 actual ships that have been collected. Year began to implement the second phase of EEDI requirements. In addition, the IMO will also discuss and study new environmental protection regulations such as restricting the use of ships’ heavy oil in the Arctic Ocean region and prohibiting the dumping of plastic waste in the near future, so as to further protect the marine ecological environment and benefit people.
The EU countries have 32% of the world’s ocean-going fleet, and have always attached great importance to the requirements of ship emissions. At the summit, Lgnacio, the second secretary of the European Delegation to China, introduced the implementation of the regulations concerning the monitoring, reporting and verification (MRV) of ships’ carbon emissions. According to the regulations, from 2018 onwards, the EU will collect the ship’s emissions records of each member state and form an assessment report in 2019. This will help the EU shipbuilding industry to continue to maintain its leading position in technology. Recently, the European Union is also actively exploring new technologies and new models for sulfur-restricted, liquefied natural gas (LNG) applications, etc., and continues to promote the development of green shipping.
Jennifer, the director of the US Coast Guard Verification and Compliance Department, explained in detail the regulations of ballast water management systems in the United States. According to her, in view of the thousands of illegal discharge cases investigated and dealt with by the United States in 2017, technical defects, improper operations, and lack of emergency measures are the main causes of non-compliance. She suggested that shipowners and ship charters should strengthen crew training to avoid legal risks and economic losses. In addition, the US Coast Guard will also carry out E-ZERO certification, providing regulatory convenience and preferential treatment for high-quality ships.
Since China established the ship emission control zone in 2016, the implementation of the plan has been relatively satisfactory. According to Dong Leyi, director of the Bureau of Defending and Preventing Pollution at China Maritime Safety Administration, as of the end of 2017, China’s maritime authorities conducted a fuel inspection on more than 30,000 vessels. Among them, the lowest rate of violation of international navigation ships is only 3.2%, and the violation rate of inland rivers and Jianghai ships reaches 25.9%. According to the environmental monitoring data, the air quality in the domestic port areas continued to improve, and the sulfide content in Shanghai, Shenzhen, Jingtang, and other port areas decreased significantly, and the discharge of PM pollutants was effectively controlled. However, the existing ship emission control area has not yet covered some key ports. Control measures have not involved nitrogen oxides (NOx) emissions. Alternative measures such as the use of LNG fuels, installation of desulphurization equipment, etc. have been difficult to promote, and the regulatory capabilities have yet to be improved. . To this end, the relevant departments will adjust and upgrade the program to meet the overall requirements of the country to “fight a tough fight against pollution,” and to speed up the response to the IMO’s new requirement that 0.5% of low-sulfur fuel will be commonly used in global waters by 2020.
In terms of control measures, for sulfur oxides (SOx) and particulate matter (PM), China will consider the use of 0.1% sulphur fuel in coastal waters, and inland waters use compliant regular diesel; for NOx, the new ship will be on schedule. Or implement the existing international standards in advance, that is, the Chinese national ships built after November 2021 to implement Tier III limit standards, and will use shore power when berthing; for volatile organic compounds (VOC), built after 2020, Entering the ship’s emission control area (DECA), a Chinese tanker with a gross tonnage of 150 tons or more, should have oil and gas recovery conditions. In terms of the scope of control, on the basis of the existing ship emission control zones, other key areas will be added, such as Huanghai Sea, Haixi, Beibu Gulf and West Guangdong. According to Dong Leyi, the China Maritime Safety Administration is currently stepping up its research work, and plans to adjust and upgrade ship emission control areas will soon be introduced.
During the summit, experts from companies such as ABB, COACH, GTT, Scania, Mann, Sinocraft Winterthur Engines, and Montgomery Gas introduced new technologies and new products for ship-related emissions reductions.
Post time: Jun-12-2018