China – The Superpower in Shipbuilding Industry

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shipbuildingChina ruling the sea – Transporting Industry

The initiation of the shipbuilding industry goes back to the late 1200’s when the Yuan Dynasty was the in-charge. Several war ships were constructed during this period and there were close to 18,000 warships which were in utilization. The kinds of that era regularly ordered makings of large quantity warships estimating a war that would take place in the near future. Besides these warships, there was a huge count of local civil ships which were bountifully spread to all parts of the country. The other shipbuilding industries such as from the Arab and the western fronts were witnessing a decline in their market and thus this was a gaining period for the Chinese industry.
Moreover, the changing technologies of the shipbuilding industry in china increased its demand around the globe as it soon emerged as the world leader in constructing variety of sea boats right from the four-mast sea boats to the eight-mass horse ships and the nine-mast precious ships that had the ability of carrying valuable cargo items.

The modern shipbuilding industry of China is jam-packed with developing technologies and the volume at which the business is done is robust. Since the early 1990’s the industry is witnessing continuous developments as the percentage of ships completed is going up year after year. This industry in china is a big contributor to the subsidiary ones like the fisheries, cargo transportation, water transport system and other marine developments. China rightly is stated as the world leader in the shipbuilding business as it accounts to almost 48% of the total shipbuilding activities of the globe according to a report for 2013. According to a global market research, the leadership status of construction massive volumes of sea fliers comes to them for the 5th consecutive time surely thumping their dominance in the industry.

Talking about the number of deliveries of new ships, the Chinese market is again the front runner for the 4th consecutive annual having a majority share of 40.3% of the global deliveries. The market for new ships in the industry for 2013 accounted to 69.84 million DWT (Deadweight Tonnage) which was up by 242% from the last year. The volume for export orders was about 64.74 million DWT going up by 333% from the year 2012. The value at which the Chinese shipbuilding companies held orders was 131million DWT. This went up by 22.5% from its previous year. The holding export orders in 2013 went up by 30.5% to a value of 115.41million DWT compared to the last year.

Combination of new order, completions and holding orders volumes enabled China to stay on the top of the industry. It decreased in its margin however, closely followed by Japan and Korea. The advanced technologies involved in the industry brings in bulk orders like the construction of super-large cargo carriers, duplex stainless steel chemical vessels, ocean fishing vessels, public service vessels and specified vessels such as the VLGC ships and LNG ships.

Looking at other country’s potentials like Korea, Singapore, Japan and Europe in the shipbuilding industry they have surely declined to a certain extent due to the rising competition, struggling economic conditions and other issues like rising labor and raw material costs and degrading order values.

On a totality, the Chinese shipbuilding industry is predicted to grow further with the low cost functionality and the upsurge of the local demand. These factors are likely to attract bulk foreign investments.