As global shipbuilding market being depressed with newbuilding price taking a downward trend, Chinese shipbuilding industry also have suffered from terribly poor order contracts.
According to statistical data for February, newbuilding price for capesize bulker is $47m, panamax $27.5m and handymax $25.5m, which all dropped month-on-month.
In case of tanker, VLCC, suezmax and aframax all declined to $97.5m, $59m and $51.5m, respectively.
Containership is not very different from other vessels. Newbuilding 6,600-teu boxship now costs around $67m, similar to the lowest mark in 2004. It is even unpredictable whether the price would keep falling or turning around afterward.
Shipbuilders would continue to have difficulty in winning new orders, since owners would still be reluctant to place newbuildings when rates keep falling by fleet over-supply, said China Fortune Securities.
China's Top 10 shipyards are going through crisis as well, having just contracted cumulative of 1.29m dwt in February.
The 10 shipbuilders are Dalian Shipbuilding Industry Corporation (DSIC), Shanghai Waigaoqiao Shipbuilding (SWS), Hudong-Zhonghua Shipbuilding, New Century Shipbuilding, Penglai Bohai Shipyard, Guangzhou Shipyard International (GSI), Jiangsu Yangzijiang Shipbuilding, Jiangnan Shipyard, Shanhaiguan Shipbuilding Industry (SHGSIC) and Qingdao Beihai Shipbuilding Heavy Industry (BSIC).