By Jite Eriabie
Chinese yards saw new orders pick up in the first nine months of the year, rising 8.7% from the previous corresponding period to 20.13m dwt as a recovery in dry bulk shipping rates in the later part of the year seemed to inspire more new orders.
Figures from the China Association of the National Shipbuilding Industry (Cansi) also showed that there was strong growth in completed orders during the period.
Chinese ship builders completed some 35.15m dwt of tonnage in the first nine months, up 41% from the same period a year ago.
However the pickup in orders was at the cost of revenue, Cansi said. The gross industrial output value of the 80 major companies in the shipping industry came up to RMB284.4bn ($42.9bn) during the first nine months, down 6.9% from the previous corresponding period.
Analysts warned that this is likely a function of changes in demand in the shipbuilding market, with owners seen looking for more complex ships, which not many Chinese yards are capable of handling. As such the average vessel value and revenue for them remains low.
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