China's shipyards have received more than 1 billion US dollars in the recovery of the order industry

Recently, a number of domestic shipbuilding companies, including Rongsheng Heavy Industry and Jinhai Heavy Industry, have repeatedly won large orders with a total amount of nearly US$1.8 billion. On May 20th, the statistics of the "Daily Economic News" reporters from the China Shipbuilding Industry Association showed that from January to April, the national shipbuilding completed 10.36 million DWT, down 24.9% year-on-year; the new ship orders were 30.3 million DWT. , a year-on-year increase of 160%. At the end of April, orders for hand-held ships were 150.15 million DWT, a year-on-year increase of 43.2%, an increase of 14.6% from the end of 2013.

In the context of soaring orders, the operating performance of domestic shipping companies began to gradually improve. According to statistics from the China Shipbuilding Industry Association, from January to April, 87 key monitoring enterprises in the shipbuilding industry achieved a revenue of 83.2 billion yuan from the main business, a year-on-year increase of 20%; total profit was 2.2 billion yuan, up 5.7% year-on-year.

Does this indicate that the Chinese ship market is gradually coming out of the trough?

In this regard, Zhang Guangqin, president of China Shipbuilding Industry Association, told the reporter of "Daily Economic News" that although the number of new orders received by domestic shipbuilding enterprises is growing rapidly from the data, it is expected that the growth rate of new orders will gradually slow down in the future. . "As the price of the ship rebounds, the shipowners are now more cautious about ordering ships."

The reporter found that a number of recent reports issued by international shipping consulting agencies verified Zhang Guangqin's above statement. These advisory bodies pointed out in the report that a large number of new shipbuilding orders have already threatened the market's prospects.

Many shipping companies get big orders

On May 19th, Jinhai Heavy Industry Co., Ltd. (Jinhai Heavy Industry Co., Ltd.) and CMAGM (CMACGM), which are owned by HNA Group, successfully signed three 2500TEU ice zone enhanced container ships in Shanghai, with a total amount of approximately US$100 million. At the same time, Jiangsu Zhonghai Industry also received orders for six 9400TEU ultra-large container ships of CMACGM, with a total value of approximately US$520 million.

Coincidentally, on May 18, 1 day ago, China Rongsheng Heavy Industry Group Holdings Co., Ltd. (01101, HK), one of the largest private ship companies in China, announced that it had signed a 64,000 DWT bulk carrier with a European shipowner. Construction contract. This increased the number of 64,000 DWT bulk carriers signed by Rongsheng Heavy Industries and the shipowner to 36, including 24 for actual orders and 12 for option orders with a total order value of approximately US$1 billion.

Last week, Zhejiang Yang Sailing Factory received orders for four bulk carriers ordered by the US fund Dunberg Group and four alternative orders with a total order value of approximately US$224 million, which is expected to be delivered in 2015 and 2016.

The reporter learned from the insiders that the 36 64,000 DWT bulk carriers acquired by Rongsheng Heavy Industries were ordered by a Greek shipowner who signed 18 ships of 64,000 with Rongsheng Heavy Industry in September 2013. For orders for DWT bulk carriers, the price of each ship is approximately US$26 million. Later, as the shipbuilding market continued to pick up, the shipowner negotiated with Rongsheng Heavy Industries to increase the number of orders for the original 18 ships and added 12 orders for the option. The cost increased from the original US$26 million to 28 million. In the US dollar, the prepayment ratio of orders reaches 50%.

Lei Dong, director of the office of Rongsheng Heavy Industry, told the reporter of "Daily Economic News" that since the middle of last year, the international bulk carrier market has recovered rapidly. Recently, the green energy-saving 64,000 tons bulk carrier has been greatly supported by major shipowners. In pursuit, the volume of new ships is very active. Therefore, the transaction amount and payment terms of Rongsheng Heavy Industry's order were significantly better than the previous market transactions.

“In order to get this order, Rongsheng Heavy Industry has already vacated the entire 4# dock to support production, and can deliver up to 9 ships per year at the earliest. This will be very helpful for the company's production tasks in the next few years and to enhance its ability to continue operations.” Dong said.

In addition to the new orders, the reporter also learned from Rongsheng Heavy Industry that the company has been continuously delivering cash flow from the ship replenishment shipyard in the near future.

For example, on May 19, Rongsheng Heavy Industries delivered a 157,000 dwt Suez tanker to Norwegian shipowner Frontline. On May 9th, Rongsheng Heavy Industries delivered the first 157,000-ton Suez tanker to Greek shipowner Cardiff, while Cardiff ordered two other 157,000-ton Suez tankers and four 76,000 tons of ice-area enhanced bulk cargo. The ship is also being produced in an orderly manner. On May 22nd and June 5th, Rongsheng Heavy Industries will also test and deliver two 400,000-ton super-large ore carriers (VLOC) ordered by Vale.

Although the business is improving, some insiders also said that whether Rongsheng Heavy Industry can get out of the woods this year depends on how many new ship orders the company can receive and the financing support of the bank.

Or face the problem of excess capacity again

Some insiders said that from the second half of 2013 to the first quarter of this year, although the volume of new orders has shown a sharp increase, the contradiction of excess capacity in the global shipping market has not been fundamentally resolved. Shipping companies have not got rid of the loss and the contradiction of overcapacity in shipbuilding remains. Prominent, the price of new ships is low.

According to recent reports from the shipping professional website HellenicShippingNews, as the freight rate rises can't keep up with the growth rate of new ship orders, more and more ship owners are starting to wait and see the market, waiting for the shipbuilding price to drop. In this context, the shipowner will continue to the next step. Orders for shipbuilding are cautious, and in recent weeks, the global new ship market has also begun to lose its vitality.

"Daily Economic News" reporters check the recent data released by the British shipping brokerage company Clarkson. From the beginning of this year, the global new ship delivery capacity will reach 299 million DWT, and the current global fleet capacity is about 1.7 billion DWT. , an increase of 17.6%. At the same time, the global seaborne trade volume is expected to increase by 4% in 2014. If the trade volume growth remains at this level in the next two years, the delivery of a large number of new ships will cause the shipping market to face the problem of excess capacity again after 2016.

Italian broker Banchero Costa also pointed out in the latest report that the charter rate and the increase in ship prices reflect the improvement in the fundamentals of the ship market. However, the wave of orders for a large number of new shipbuildings poses a threat to the market outlook.

A domestic ship broker said that the future of the global ship market will mainly look at the Chinese market. From 2008 to 2013, China's seaborne imports will reach 2 billion tons in just five years, becoming the world's major dry bulk. The market, but in the future China's seaborne import market is increasingly close to the demand for ships, and whether it can support the new shipping capacity in the future ship market is still a question mark.