70% of global orders between January and September for green products ships will be “built” in Chinese shipbuilding yards, totaling 87.11 million tons of deadweight.
According to statistics published by the Ministry of Industry and Information Technology ChinaNewbuild coverage in this period includes all major ship types, while the number of orders increased by 51.9% year-on-year, representing 74.7% of the global total.
At the same time, China’s growing dominance in building green ships is causing reactions in Europe and the US.
“When countries outside the EU export goods to Europe at prices below their normal market value, it is hurting the shipbuilding industry,” said Vincent Guerre, Director of Trade and Competitiveness at SEA Europe, in a recent publication on X.
The Office of the United States Trade Representative has launched an investigation into China’s actions, policies and practices aimed at dominating the shipping, logistics and shipbuilding sectors.
In the first place
According to China’s Ministry of Industry, among 18 major ship types such as container ships and tankers, China ranked first in new orders, with 14 of them during the nine months.
Shanghai-based Hudong-Zhonghua Shipbuilding (Group) Co Ltd, a subsidiary of China State Shipbuilding Corp, or CSSC, delivered 17 merchant ships from January to September, while a record eight LNG carriers are expected to be delivered by end of the current year. .
New orders for ships powered by green energy accounted for 57% of the global fleet, the data showed.
Orders for green ships powered by LNG and methanol have increased rapidly, while significant progress has been made in orders for ships equipped with electrical and hybrid systems or hydrogen fuel.
Powered by green technologies and high-value-added ships, Jiangsu province exported a wide range of ships worth 69.27 billion yuan (9.78 billion U.S. dollars) in the first eight months of 2024, achieving an increase of 75 .1% annually, according to data from Nanjing Customs.
Earlier this week, five 40,000-ton bulk carriers were commissioned at CSSC Chengxi Shipyard Co Ltd’s research and development facility in Jiangyin.
It should be noted that in total China’s shipbuilding production “reached” 36.34 million dwt, increasing 18.2% on an annual basis, constituting 55.1% of the global total.
Restoration of competition
On the occasion of China’s dominance in the global shipbuilding industry, SEA Europe, the Association of Shipyards and Maritime Equipment in Europe, within the scope of the Draghi proposals, called for the support of European shipyards and manufacturers of marine equipment, highlighting that the sector should be included in the European Commission’s revised plan to support the maritime transport sector and ensure sustainability.
The Director of Trade and Competitiveness at SEA Europe, Vincent Guerre, in his recent post on X, emphasizes that, in order to restore fair competition, the EU can apply trade defense measures, such as the imposition of provisional countervailing duties, but first collect information and publish reports.
The United States Trade Representative recently announced that, after reviewing a petition filed with the Office of the United States Trade Representative (USTR) by five national unions, it is launching an investigation into China’s acts, policies and practices aimed at dominating its maritime sectors. , logistics and shipbuilding.
As explained in an official announcement, the USTR is seeking public comment and will hold a public hearing in connection with this investigation.
“China’s shipbuilding industry operates under the doctrine of civil-military fusion, under which merchant ship exports are subsidized to bolster the country’s military capabilities,” Colin Cooke, president and CEO of Canadian Marine Industries and of the Shipbuilding Association (CMISA).