Global newbuilding market is over-supplied, as Chinese government's support for domestic shipbuilders continues.
Mitsui Sumitomo Banking of Japan explained that China's financial institutions and government exert a massive influence on supply and demand of ships, by aiding selectively on its state-owned shipbuilders.
Large private-owned yards are likely to get over recent hardship, by help of local governments' investments on them, as well.
Overall, small-and-medium yards would go through a hard time as they get only limited support from financial institutions and local governments, which also suffer from economic troubles, while large private- and state-owned shipbuilders would maintain operations by 2014.
Supply and demand in shipbuilding industry is hard to measure, due to "China Factor," which does not follow economic cause and effect.
Chinese yards made only 60% of delivery in 2010 but is expected to deliver handymax bulker of 13m-14m dwt this year, increased from previous estimation of 6m dwt.