Zhejiang, China is facing growing contractual conflicts in regard of shipbuilding and ship sales, according to Zhejiang Supreme People's Court and Ningbo Maritime Court on August 23.
In the first seven months, shipbuilding and ship trading related conflicts received by Ningbo Maritime Court stood at a total of 84 cases, up by 79% from 47 year-on-year.
Regarding increasing disputes of shipbuilding process, courts explained that recent situation is mostly caused by some shipyards have proceeded massive shipbuilding, under the wrong decision that shipbuilding market and newbuilding prices would grow before long.
Also, current newbuilding prices have declined by one third from the peak amid depression and many shipyards are facing tightened financing problem.
Courts reported that recently Zhejiang is under construction of demonstrative offshore economic complex and growing number of M&As between shipyards is seen, with small-and-medium shipyards getting worse.
Moreover, courts advised that shipyards and shipowners should better cope with changing situation, such as newbuilding prices, tonnage demand and supply, etc., as well as shipowners should think carefully about speculative ordering.