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At least 248 newbuilding orders cancelled
At least 248 newbuilding orders had been cancelled in China by mid-August, according to a survey by Kaiji Press. Bulkers numbered 177, accounting for 70% of the total. These included 56 Capesizes. The cancelled vessels also included 33 tankers and 13 containerships.
Handymaxes, at 61 units, led the list of bulker cancellations, followed by Capesizes, post-Panamaxes, Panamaxes and Handysizes in that order. At the peak time, Chinese shipyards had more than 200 million dwt of bulker newbuildings on order. That explains why a large number of bulker orders have been annulled.
In contrast, not many tankers and boxships were cancelled because there had been relatively fewer orders for such vessels. The hardest hit were Suezmax tankers, with orders for 20 units having been retracted. No order cancellations involving Aframaxes and product carriers have been confirmed so far. However, a majority of Chinese shipyard officials say that the number of cancellations "doesn't mean much".
An official with a Chinese marine equipment manufacturer said, "Basically, annulment of newbuilding orders is based on retraction of orders for main marine equipment such as engines. In China, orders for such equipment are cancelled even when newbuilding contracts are rewritten to cover waiver of options and changes in delivery dates, ship types and numbers. Therefore, pure order cancellations are not that many."
A Chinese shipping official said, "Shipyards will continue work on the cancelled vessels to sell them to owners at home. Their completion will be naturally behind schedule. But those ships will be put on the market sooner or later."
The supply of bulker newbuildings by Chinese yards may not drop to the extent other countries estimate
Newbuilding Order Cancellations in China(by ship type)
| | | (As of Mid-Aug. 2009) | Ship Type | Unit | | Bulker | Capesize | 56 (2/54) | | Post-Panamax | 30 (4/26) | | Panamax | 14 (4/10) | | Handymax | 61 (18/43) | | Handy | 14 (12/2) | | Ore Carrier | 2 (2/-) | | Total | 177 | | Tanker | VLCC | 7 (2/5) | | Suezmax | 20 (20/-) | | Aframax | 0 (-/-) | | Product Carrier | 0 (-/-) | | Chemical Tanker | 6 (6/-) | | Total | 33 | | Containership | 13 (9/4) | | Car Carrier | 8 (6/2) | | Gas Carrier | 0 (-/-) | | General Cargoship/Others | 16 (16/-) | | Offshore | 1 (1/-) | | Grand Total | 248 | | * Figures in parentheses indicate surfaced/prospected cancellations |
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