Chinese yards face long delays in orders

Up to half of all newbuilding orders placed at Chinese yards could end up being delayed as owners try to ride out the recession, according to the government.

National Development and Reform Commission deputy director Xiong Bilin said that worldwide building capacity was outstripping current poor levels of demand, with yard space nearly double current ordering levels. Xiong said that Chinese yards were being badly affected by the current spate of cancellations and delays caused by owners seeking to cut both their outgoings and the overcapacity that currently plagues most sectors. Four million dwt in new tonnage has already been axed at the country’s shipyards.