More Important Factors
It has been found that China’s ship delivery showed a rapid decline from 20.16 million CGT to 13.51 million CGT between 2012 and 2013, after having soared from 7.19 million CGT to 20.89 million CGT between 2007 and 2011.
For shipbuilders, the number of ships delivered is a very important competitiveness index comparable to the amount of orders received. Recently, China has increased the ratio of insourcing in the shipbuilding industry with the Chinese government providing more and more support for the industry. Some experts mention that the pace has been too fast though.
“Design can be covered with money but actual production requires accumulated technology,” said Yang Jong-seo, senior research analyst at the Export-Import Bank of Korea, adding, “It seems that China currently has the lack of skilled engineers and production systems that suit shipyards.”
The decline in delivery is leading to a drop in sales, causing an increasing number of Chinese shipbuilders to go out of business. According to the China Association of National Shipbuilding Industry, the number of Chinese shipbuilders fell from 3,000 or so to about 100 between 2010 and May 2015. Under the circumstances, ship owners are turning their eyes to Korean shipbuilders for a higher level of energy efficiency, punctual delivery and higher safety standards.