According to Danish Ship Finance institute (DSF), global shipbuilding market is expected to recovery to the level of 2008 by the end of 2014. Besides, DSF points out that Chinese private small and medium shipyards are mostly likely to be hit most heavily in the recession.
The Copenhagen-based institute estimates that global shipyards are close to word out orders at hand. About 9% of global shipbuilding capacity is projected to close in 2013 if current ordering activities continue and 11% in 2014.
DSF indicates that the private small and medium shipyards in China will be the center of the adjustment. In the first eight months, about 138 out of the 622 shipyards in operation received no order, accounting for 35% of global builders.
According to DSF, about 4% of Chinese shipyards are to go bankruptcy in 2012 and 5% in Korea.