Although many Chinese shipyards are rushing for low-price orders, insiders are pointing out that time is running out for cheap newbuildings.
Board director of New Century shipbuilding Liu Jinhai said, “Many yards are operating at “cost level”, but it is definitely not sustainable in the long term.”
He also expects a grim picture of the Chinese market where state-run shipyards almost swepp the orders from state ship owners while private yards remain on the sidelines. Besides, many private-owned shipowners or overseas players are also unlikely to put orders on those private yards.
But Liu also put forward that this phenomenon would not last for shipyard could not survive at these prices for more than two years or more.
“The market is going to be very difficult for private yards such as ourselves for the next few years.” Said Liu.