Shipbuilding industry entering “winter”

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Category: Ningbo District

Published: Tuesday, 20 March 2012 13:18

Affected by the global financial crisis, the shipping industry, which is closely related to foreign trade, has undergone great pressure since the second half of last year. The shipbuilding industry in Ningbo is confronted with a severe situation after a rapid annual growth rate of 1.5 times for two successive years.
The latest statistics from Ningbo Customs show that in the first two months, 3337 ships valued at 82.48 million US dollars were exported, down by 43% and 58.9% respectively over the same period last year. Among them, 3335 ships (worth 897,000 US dollars) are small ships for entertainment and sports utility, and were exported on a general trade basis.
According to some related officials from Ningbo Customs, the dramatic decrease of ship exports in Ningbo was mainly caused by the ever-growing contradiction of supply and demand in the market. Mr. Ye, Manager of Ningbo Dongsheng Shipbuilding Co. Ltd., said that since the second half of last year, the shipping market has entered “deep winter period”. Last year, some shipbuilding plants could draw on their previous orders. However, with the decrease of inquiries this year, shipbuilding enterprises are facing the problem of order shortage. In addition, with the ever-increasing cost caused by price rise of raw materials, financing difficulties, increase of labor costs and appreciation of RMB, the profit space of related enterprises is shrinking.