After facing financial crisis in 2008, global shipbuilding industry showed some level of rebound in 2010, however, it appears to have a double-dip recession this year, due to Eurozone crisis, overtonnage and troubled shipping market, etc., according to China Credit Rating (CCR).
In 2011, global new order has been almost halved to 62.46m dwt on a previous year. Also, in the first four months of this year, 12m dwt has been invested, down by 55.6% year-on-year and global orderbook, as of the end of April 2012, stood at 328m dwt, down by 8% on the end of 2011 and down by 25% yoy.
Also, decrease in new order has led to a steady decline in newbuilding price; Clarkson Newbuilding Price Index, at the end of April, dropped to 134p, the lowest ever since global financial crisis in 2008.
CCR pointed out that Chinese shipyards have been on uptrends in delivery, operating income, net profit, etc., due to high-price newbuildings contracted before, however, recently, they are struggling with low-margin order or no contract at all.
It also analyzed that Chinese shipbuilding industries have entered a downward trend, which is expected to maintain for a couple of years. Moreover, troubled with new order drought, decrease in newbuilding price, increase in material cost, etc., some small-and-medium yards are to even fall behind from the market.
On the other hand, large shipyards with high technical skills will expand into high-value market and make steady profits.