Shipbuilding market for 2012 seems discouraging, even worse than after global financial crisis in 2008.
According to a member of the National Committee of the Chinese People's Political Consultative Conference and chief engineer in Jiangnan Shipyard, "lack of order and fleet oversupply" are one of the biggest problems.
Also, he said that recent trends, such as owners securing newbuildings from getting ship finances as registered by shipbuilders and charter-in from yards or the third parties, etc., only occur when the market is depressed.
He explained that clouds landed on shipbuilding market after global financial crisis in 2008 had been drifted off by growing new orders from 2009 and increasing demand from energy corporation in 2010.
However, starting from last year, Eurozone crisis etc., has led to drop new order. The Chinese government had planned to organize revitalization policy, which turned out to be of no help in shipbuilding industry without any practical detailed plan, he pointed out.
He also showed pessimistic about large-size M&As expected in the near future. Many companies would go bankrupt rather than to be merged without any work.