New Shipbuilding Orders Decreased by 49% (China)

In the first half of 2012, the global economic downturn and weak international trading activities continued to exert pressure on the shipping industry, which has been struggling since the second half of 2011.

The imbalance between supply and demand of the shipping industry further worsened, leading to a reduced overall shipbuilding demand, and new shipbuilding orders plunged significantly.

According to the latest Clarkson Research report, new worldwide shipbuilding orders decreased by 46.0% year-on-year for the Period measured in deadweight tonnage (DWT), while new shipbuilding orders in China fell 49.0% year-on-year in the same period.

In this adverse market environment, Rongsheng Heavy Industries Group adopted a defensive sales strategy by avoiding low-price orders or orders with unfavorable payment terms while moving towards the high end of the value chain. The company received new orders for 2 vessels for the six months period ended 30 June 2012, representing a total volume of 152,000 DWT with a total contract value of USD55.6 million.

The Group’s total orders on hand as at 30 June 2012 consisted of 101 vessels, representing a total volume of 15.1 million DWT with a total contract value of USD5,884.9 million. It included 48 Panamax bulk carriers, 19 very large ore carriers (VLOCs), 23 Suezmax crude oil tankers, 1 Panamax crude oil tanker, 2 very large crude oil carriers (VLCCs), 4 6,500-twenty-foot equivalent unit (TEU) containerships and 4 7,000-TEU containerships. All the vessels in order book will be delivered within the period from 2012 to 2015 as stated in the contracts.

For the Period, the company has delivered 11 vessels, representing a total volume of 1,864,000 DWT and increased by 44.7% year-on-year. Including 2 VLOCs that RHSI delivered for the Period, the company has increased the number of VLOCs delivery to 3 so far.

These vessels are currently the world’s biggest dry bulk carriers with the largest cargo capacity, featuring state-of-the-art technologies for the mega-sized bulk carriers.

[mappress]

World Maritime News, August 23, 2012