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Chinese ship-building industry expects demand to rise in 2014

Steel News - Published on Thu, 27 Feb 2014

The ship-building industry may be set for a turnaround. A consultant that tracks the global shipping industry reports 153 large new cargo ships were ordered last year. That\'s a 76% increase from the previous year. The surprising growth is in contrast to the slowly recovering global economy.

Tay Linsiau has been working in the shipping business for 13 years. The Singapore-based company ordered four new ships this year after years of suffering through a declining market.

Tay said that 35,000 tonne ships like the model in his office are now too small to be efficient cargo carriers.

It said that \"For the kind of ship that we ordered, 64,000 tonne, they are actually cheaper than the ones that people started ordering in mid 2000, which are smaller at 57,000 tonne. Because it\'s cheap, if they don\'t have any cargo or they don\'t have any use for the vessels later on, they can find some way to re-let the vessels or to sell them.

The Danish company DSF invests in building ships and it says that the cost to build a new ship fell to a 10 year low of about USD 1,400 per tonne last year. Meanwhile, Barclays Group in Britain is predicting a 5.8% increase in cargo volume to be shipped this year. That means demand for cargo volume will exceed shipping capacity for the first time since the economic crisis began in 2008.

Source - CNTV

Posted By : admin on Thu, 27 Feb 2014
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