Monday, June 13, 2011

Chinese move into larger boxships



Yangzijiang Shipbuilding’s $700m order for seven 10,000 teu containerships from Seaspan, with options for 18 more, could signal the start of a major shift in boxship building from South Korea to China.




Yangzijiang chairman Ren Yuanlin said the deal represented a “strategic move” for the company. “The successful design and manufacture of the 10,000 teu container vessel is important to promote and transform Yangzijiang and also the overall Chinese shipbuilding industry,” he said.



Barclays Capital research analysts Jon Windham and Patrick Xu said they believed the shipbuilder to be “one of the best-quality container yards in China”.



They said: “Securing these orders confirms our view that Yangzijiang will take leadership by moving into larger vessels, thus marking a shift in container shipbuilding in China, over the next five years.”



Yangzijiang’s orders prior to the latest one from Seaspan have been for smaller boxships, with the largest order on its books up to now being 4,800 teu.



Other Chinese shipyards have also shared this focus on smaller sized boxships, but data from Clarkson suggests a gradual clawing away of market share in larger vessels of more than 8,000 teu from South Korean yards, which traditionally have dominated the field.



There are 257 vessels comprising 2.8m teu on the global order book for containerships of greater than 8,000 teu. Of these, 77% are on order at South Korean yards and 13% at Chinese yards. The rest is made up of orders with builders mainly in Taiwan and Japan.



Looking purely at orders for post-panamax containerships in 2011, of the 702,200 teu booked year to date, 74% of orders have been placed at South Korean yards, while 14%, or 70,000 teu, went to China.



While the 70,000 teu is purely as a result of the Seaspan deal, should some or all of the options on the 18 additional vessels be exercised, then China could see its presence grow significantly.



“It is apparent that Chinese yards have begun to compete aggressively for orders,” noted Clarkson Research Services in its second quarter 2011 Container Intelligence Quarterly, pointing out that Jiangnan Changxiang has the fifth largest orderbook for containerships.



Mr Wu of Barclays Capital said Chinese yards had the advantage of lower labour costs, while at the same time many were improving their shipbuilding capabilities.





Published : June 13, 2011



Source: Asiasis
 
 
 
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