World’s Biggest Shipbuilder. After the merger of state-run shipbuilders China State Shipbuilding Corp (CSSC) and China Shipbuilding Industry Co (CSIC), the world’s biggest shipbuilder is established in China with assets of $112 billion. China State Shipbuilding Corp (CSSC) and China Shipbuilding Industry Co (CSIC) merger is named China Shipbuilding Group which will be the world’s largest shipyard company. China Shipbuilding Group has 147 research institutes, business units, and listed firms and 310,000 employees. China State Shipbuilding Corp (CSSC) and China Shipbuilding Industry Co (CSIC) merger will boost operational efficiency. China State Shipbuilding Corp (CSSC) and China Shipbuilding Industry Co (CSIC) merger has been in the making since Hu Wenming, a former China communist party leader of the state-owned aviation industry, was assigned to China State Shipbuilding Corp (CSSC) as party secretary in 2010. Actually, China State Shipbuilding Corp (CSSC) and China Shipbuilding Industry Co (CSIC) merger was planned in 2009. Hu Wenming was retired in October 2019 ahead of the merger. China State Shipbuilding Corp (CSSC) chairman Lei Fanpei will lead China Shipbuilding Group. China Shipbuilding Group will be the world’s largest shipbuilding company, with more than 10% of the global ship newbuilding order-book. China Shipbuilding Group is set to control more than 50% of China’s shipbuilding capacity. China Shipbuilding Group is going to control giant shipyards such as Hudong-Zhonghua Shipbuilding, Jiangnan Shipyard, Shanghai Waigaoqiao Shipbuilding, CSSC Offshore & Marine Engineering, and Dalian Shipbuilding Industry Co.
Japanese shipbuilding giant Oshima Shipbuilding and class society DNV GL have launched a new design of bulk carrier called Oshima Ultramax 2030. Oshima Ultramax 2030 would use half the energy of conventional bulk carriers and utilizes wind, LNG fuel, battery, and solar power. Oshima Ultramax 2030 bulk carrier design maximizes operational performance while minimizing emissions. Oshima Ultramax 2030 bulk carrier design has an Energy Efficiency Design Index (EEDI) 50% lower than comparable bulk carriers. According to NV GL’s Director Trond Hodne, in order to help the shipping industry to meet the ambitious reduction targets set by International Maritime Organization (IMO) rules, the shipping industry needs to come together to advance ship design. Oshima Ultramax 2030 bulk carrier’s solar panels allow the design to offer ultra-low emissions in port and battery to cover waiting times and port operations. Japanese shipbuilding giant Oshima Shipbuilding and class society DNV GL have signed a long-term strategic cooperation agreement. Oshima Shipbuilding and DNV GL will design according to the International Maritime Organization (IMO)’s zero-emissions scenario in 2030.
Chinese shipyard Yangzijiang Shipbuilding has received an order worth a total $470 million of newcastlemax 208K DWT dry bulk carries from China Development Bank Financial Leasing (CDB FL). All ordered kamsarmax dry bulk carriers are on the back of 5-year charters from Cargill. Each kamsarmax dry bully carrier has a price tag of $47 million. New building kamsarmax dry bulk carriers will comply with the International Maritime Organization’s Tier-III nitrogen oxide regulations. this is the second time that China Development Bank Financial Leasing (CDB FL) has worked with Yangziiiang Shipbuilding. Previously, China Development Bank Financial Leasing (CDB FL) ordered four 260K DWT ore carriers backed by Fortescue Metals Group (FMG) for 12 years.
One of the world’s biggest shipbuilder Korean DSME Daewoo Shipbuilding & Marine Engineering’s debt restructuring plan is accepted by National Pension Service (NPS). Korean National Pension Service (NPS) will keep the struggling giant shipbuilder afloat and discuss ways to keep the shipyard with a $2.6 billion rescue package backed by Korea Development Bank and Export-Import Bank of Korea (Kexim).
Japanese shipbuilder Tsuneshi Shipbuilding is planning to establish a ‘green’ ship recycling facility in the Philippines for a $100 million investment. Japanese Tsuneshi Shipbuilding CEO Kenji Kawano announced to buy a 120-hectare facility in Negros Occidental in the Philippines. Japanese shipbuilder Tsuneshi Shipbuilding has a shipyard in Cebu, Philippines for over 20 years.
Handy handymax bulk carrier builder Jiangsu Universe Shipbuilding is liquidated by the Yizheng Court. Jiangsu Universe Shipbuilding could not repay its debts and had ceased assembling bulk carriers. Shipowners Jiangsu Bang Tuo ordered some handymax bulker carriers at the Jiangsu Universe Shipbuilding but these were never delivered. Jiangsu Universe Shipbuilding was established in 2004. Jiangsu Universe Shipbuilding has three slipways and was able to build vessels of less than 100K DWT.
Korean government wants Samsung Heavy Industries (SHI) to take over the Korean Development Bank (KDB) controlled Daewoo Shipbuilding Marine Engineering (DSME). Korean Development Bank (KDB) was forced to step in to rescue the struggling Daewoo Shipbuilding Marine Engineering (DSME). with a massive $3.68 billion bailout package at the end of 2015. Korean shipbuilding sector to be restructured and the number of shipbuilding giants might be cut down to one or two. For Samsung, shipbuilding is not a core activity and comprising just 3% whereas financing and electronics are over 70%.
Chamber of Shipping of America (CSA) president Kathy Metcalf explained how to tackle high labor costs on US flagships with tax breaks. US shipyards require ship owners to pay 50% extra to carry out maintenance and repair works than foreign shipyards due to high costs. Chamber of Shipping of America strongly supports the Jones Act, which requires US-built, US crewed and US-owned ships to trade between two domestic ports. Where many shipping veterans are suspicious about its sustainability.
Small Chinese shipyards, which sprang up at the peak of the markets like mushrooms near Pudong, Donghong, Daiiang, suffering at the rock bottom BDI. Baltic Dry Index (BDl) reached the top in 2007. Most farmers started jobs at shipyards. All shipyards are in silent and most of them bankrupted.
Sinopacific Shipbuilding Group (SSG) is restructuring one of its yards, Dayang Shipbuilding has not been in operation since it closed for the Lunar New Year. China/Yangzhou based shipyard is said to be behind in paying workers’ wages for several months and that it is planning to reduce the workforce by 30% of 1,600 employees. SSG Shipyard built its success on the fuel-efficient Crown bulker design during the market peak.