China Shipowner’ Association (CAS) has recently expressed its firm opposition to the flooding newbuilding orders due to the low newbuilding prices. CAS says the low-cost new orders will postpone the shipping overcapacity. Besides, state-owned banks should control its support for cush orders.
According to Zhang Shouguo, vice director and secretary of CAS, current capacity oversupply will is likely to hang over for a longer even no more new orders placed. The continuous bottom-fishing of low-price orders will not only deprave the shipping market prospects but also bring shipping companies more losses.
In the last report from CANSI, Chinese shipyards totally received new orders of 9.6m dwt in the first quarter, rising by 71.1% year on year. With more Chinese banks gradually ease the control on financing support to Chinese shipyards and the promise to financially support exporters of eco ships and offshore plants, the future expectations for newbuilding market are still very positive.
According to Zhang, national support aims to enhance long-term development capacity of Chinese shipping industry instead of to encourage low-price and speculative orders, let alone to support some key market players selectively. To strengthen the competitiveness of Chinese shipyards should be the priority of national policy.