About Half of Shipyards are Now Out of Operation Worldwide

It has been found that a total of 402 shipyards are currently in operation across the world, which is equivalent to 57% of the number recorded during the heyday of the global shipbuilding industry in 2009. Being in operation mentioned here means that each of the shipyards has at least one ship in its order backlog.

Chinese shipyards, which have focused on bulk carriers, showed the most significant decline while those in South Korea, Japan and China are suffering from the ongoing recession without exception. The number of shipyards in operation in China dropped from 382 to 140 between 2009 and this month.

In the case of Japan, the number decreased from 71 to 59 between 2008 and this month. According to the Korea Offshore & Shipbuilding Association, it fell from 66 to 47 between 2007 and the end of last year.

The three largest South Korean shipbuilders, that is, Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering, are likely to witness empty dockyards from the beginning of next year. Hyundai Heavy Industries stopped the operation of one of its dockyards last month, which was unprecedented in its history, to change its use.