Issuing agency: China Association of the National Shipbuilding Industry
Column: run analysis
source: https://www.cansi.org.cn/cms/document/11522.html
2018 is the 40th anniversary of reform and opening up, and the shipbuilding industry has ushered in new opportunities for comprehensive opening up to the outside world and high-quality development. With the joint efforts of the entire industry, my country's shipbuilding industry has maintained a leading position in three major shipbuilding indicators, the competitiveness of key shipbuilding companies has continued to improve, excess production capacity has been effectively reduced, the ship repair industry is operating well, new offshore equipment has developed rapidly, and the research and development of ship accessories products has continued to make new breakthroughs. However, due to the weakening momentum of the recovery of the world economy and shipping market, and the impact of the deep adjustment of the new ship market, Deep-seated problems such as difficulty in financing, difficulty in making profits, and difficulty in receiving orders still exist, and the situation faced by the shipbuilding industry is still severe.
In 2018, the country's shipbuilding completed 34.58 million deadweight tons, a year-on-year decrease of 14%; new ship orders received were 36.67 million deadweight tons, a year-on-year increase of 8.7%; at the end of December, ship orders in hand were 89.31 million deadweight tons, a year-on-year increase of 2.4%.
The number of export ships completed nationwide was 31.64 million deadweight tons, a year-on-year decrease of 13.6%; the number of export ship orders accepted was 32.05 million deadweight tons, a year-on-year increase of 13.9%; at the end of December, the number of export ship orders in hand was 79.57 million deadweight tons, a year-on-year increase of 1.1%. Export ships accounted for 91.5% of the national shipbuilding completions, new orders, and orders held, respectively. 87.4% and 89.1%.
In 2018, there were 1,213 shipbuilding industry enterprises above designated size in the country, with main business income of 457.79 billion yuan, a year-on-year decrease of 31.7%. Among them, the shipbuilding industry was 325.65 billion yuan, a year-on-year decrease of 30.8%; the ship supporting industry was 55.33 billion yuan, a year-on-year increase of 11.1%; the ship repair industry was 21.01 billion yuan, A year-on-year decrease of 2.9%; the ship modification and ship-breaking industry was 14.01 billion yuan, a year-on-year increase of 3.5%; the offshore engineering special equipment manufacturing was 41.02 billion yuan, a year-on-year increase of 11.4%.
The total profit of shipbuilding industry enterprises above designated size was 11.23 billion yuan, a year-on-year decrease of 23.5%. Among them, the shipbuilding industry was 4.5 billion yuan, a year-on-year decrease of 16.2%; the ship supporting industry was 2.77 billion yuan, a year-on-year increase of 29.5%; the ship repair industry was 520 million yuan, a year-on-year decrease of 32.5%; the ship modification and shipbreaking industry was 910 million yuan, a year-on-year increase of 28.2%; and the marine engineering special equipment manufacturing was 1.5 billion yuan, a year-on-year decrease of 12.7%.
In 2018, my country's shipbuilding companies took advantage of the slight increase in the international shipping market and the continued active new ship market to actively explore the market. The international market share continued to maintain its leading position. The annual shipbuilding completion volume, new orders and orders in hand accounted for 43.2%, 43.9% and 42.8% of the global market respectively in terms of deadweight tonnage; the industrial concentration of the shipbuilding industry continued to increase. The top 10 companies in the country accounted for 69.8% of the country's total shipbuilding completions, an increase of 11.5 percentage points from 2017. There is a clear trend of new orders being concentrated in advantageous companies. The top 10 companies accounted for 76.8% of the country's total new orders, an increase of 3.4 percentage points from 2017. Backbone shipbuilding companies have obvious competitive advantages, with 5 companies each entering the top 10 in the world for shipbuilding completions, new orders and orders in hand.
In 2018, my country's backbone shipping companies kept up with market demand, continued to optimize their product mix, and accepted orders for green ore ore carriers and feeder container ships in batches. At the same time, they also launched 2,500-passenger luxury ro-ro passenger ships, 7,800-space ro-ro ships, 84,000 cubic meters of ultra-large liquefied gas carriers, 18.6,000 cubic meters of liquefied natural gas (LNG) bunkering ships, and 48,000-ton semi-submersible heavy lift ships. The high-tech, high-value-added ship market such as polar expedition cruises continues to make new progress. Backbone enterprises have increased technological innovation and research efforts, and continuously improved product R&D and construction capabilities. 20,000TEU-class container ships have been delivered in batches, the world's first 400,000-ton intelligent ultra-large ore ship has been built, the world's first 308,000-ton ultra-large crude oil tanker equipped with a sail device, an 8,000-space car ro-ro ship, and a polar condensate oil tanker. A number of high-end ships and offshore engineering projects such as LNG dual-fuel 1,400TEU container ships and 350,000-ton offshore floating production, storage and offloading units (FPSO), the construction of domestic large-scale luxury cruise ships has entered the formal implementation stage, the self-built polar scientific research icebreaker has been launched, and the "Deep Sea Warrior" manned deep-sea submersible has completed deep-sea testing.
In 2018, the competition in the international new shipbuilding market was fierce, and the contradiction between insufficient demand and overcapacity still existed. Under the combined effect of market mechanisms and government guidance, a number of enterprises in my country with poor management capabilities, low product quality, and poor operating efficiency were gradually eliminated by the market. In recent years, major central enterprise groups and local backbone private enterprises have promoted the relocation of old factories, optimized stock production capacity, integrated internal resources, and adjusted products and industrial structures. The cumulative reduction has reduced shipbuilding production capacity by about 20%. million deadweight tons, the excess production capacity of the shipping industry has been effectively reduced. Statistics show that the China Shipbuilding Capacity Utilization Monitoring Index (CCI) in 2018 was 607 points.
In 2018, my country's ship repair and modification industry continued to operate well, and the level of repair and modification technology continued to improve. Key ship repair companies continued to work hard in the field of high-end modification and repair, completing the world's first ultra-large container ship lengthening and modification project, the world's largest orange juice carrier modification project and the country's first membrane-type LNG ship cargo hold repair project, continuing to maintain its leading position in the fields of luxury cruise repair, FPSO modification and marine engineering equipment repair. As my country officially joins the International Ship Ballast Water Management Convention, As the International Convention for the Prevention of Pollution from Ships approaches the effective date, the installation business of ballast water treatment devices and exhaust gas desulfurization devices is active. In 2018, my country's major ship repair companies undertook the installation of 896 desulfurization towers, an increase of nearly 90% compared with 2017; the number of ballast water treatment device projects undertaken increased by more than 15% compared with 2017.
In 2018, international crude oil prices were generally in a relatively high range, with Brent oil prices once exceeding US$80/barrel. The upstream operating market of offshore engineering equipment showed a moderate recovery. my country undertook 44 ships/seat of various types of offshore equipment, totaling US$3.8 billion, a year-on-year increase of 84%. Key offshore equipment companies paid close attention to market changes, undertaking five high-value FPSOs, and at the same time guarding supply ships with LNG power. Breakthroughs have been made in LNG-related offshore equipment such as LNG floating regasification barges, as well as offshore wind power installation platforms, self-elevating marine ranching platforms, offshore wind power multi-functional repair ships, offshore wind power installation ships and intelligent fishing grounds. In addition, my country's backbone offshore equipment companies have processed orders for 10 offshore platforms and 83 offshore vessels through resale and leasing.
In 2018, my country's shipbuilding supporting enterprises adhered to the innovation-driven strategy and strived to improve product manufacturing capabilities and R&D levels. Breakthroughs were made in the research and development of key core technologies, including a green and environmentally friendly intelligent low-speed diesel engine, the first low-speed diesel engine equipped with an exhaust gas recirculation device, and the first domestically produced 25 trillion watt dual-fuel gas turbine generator successfully delivered; the research and development level of key supporting products has been improved, and the world's largest 22,000TEU container ship crankshaft was successfully rolled off the production line. my country's first independent and controllable global maritime broadband satellite communication network was officially opened; new progress has been made in the construction of high-quality product brands, and independent brands such as EX340 series ultra-long stroke low-speed diesel engines, ACD320 dual-fuel engines, and CHD622 marine high-speed and high-power diesel engines have gained market recognition.
In 2018, in the face of fierce market competition and rising overall costs, my country's backbone shipping companies took the initiative to continuously strengthen production management, strive to reduce costs and increase efficiency, and enhance corporate competitiveness. China Shipbuilding Industry Corporation studied and formulated the "cost engineering" implementation plan, clarified the hard tasks of cost reduction, and adopted hard cost reduction measures; China Shipbuilding Industry Corporation focused on the top-level design of "Lean Shipbuilding", determined key projects of "Lean Shipbuilding", and solidly promoted the benchmarking of shipbuilding indicators. Shipbuilding quality and shipbuilding efficiency continue to improve. COSCO Shipping Heavy Industry Co., Ltd. has solidly promoted the "Learning from Nantong COSCO Kawasaki" activity throughout the system, promoted advanced shipbuilding technology and lean management experience, and improved construction efficiency and management levels by establishing a shipbuilding precision management system and promoting intelligent shipbuilding. Yangzijiang Shipbuilding Group Corporation continued to promote lean management, continuously improved construction quality, shortened the shipbuilding cycle, and ensured the delivery node. Through in-depth cost reduction activities throughout the year, it saved approximately 300 yuan in costs. million yuan, the profitability level remains industry-leading.
In 2018, the international new ship market grew slightly, and all ship types market segments showed performance. In terms of revised gross tonnage, new ship orders for oil tankers, bulk carriers, container ships and LNG ships accounted for 17.8%, 21.4%, 20.5% and 19.8% of the global total respectively. The transaction structure changed from the original bulk carriers and oil tankers to bulk carriers, oil tankers and container ships. The proportion of liquefied gas carriers has changed evenly. In addition to continuing to maintain a leading advantage in the bulk carrier and feeder container ship markets, my country's shipping companies have made less gains in the field of large crude oil carriers with relatively competitive advantages and large container ships that have made technological breakthroughs. Orders in the field of large LNG ships have all fallen by the wayside. Although there are various objective factors that have caused my country to receive fewer orders for high value-added ships in 2018, The competitiveness of key shipping companies in terms of technological innovation capabilities and product brand quality of high value-added ships still needs to continue to improve to adapt to future changes in market demand.
With the deepening of the national "coal-to-gas" policy, my country's demand for natural gas has increased significantly, especially in the past two years, my country's total imported natural gas has grown rapidly. In 2018, my country imported 90.39 million tons of natural gas, a year-on-year increase of 31.9%, becoming the world's second largest natural gas importer. With the transformation and upgrading of my country's energy structure and the implementation of environmental protection policies in key areas and key industries, experts predict that my country's demand for natural gas will maintain steady growth until 2030. my country's demand for natural gas has led to an explosion of global LNG ship orders. About 50% of the natural gas imported into my country needs to be transported by sea every year. In 2018, there were 76 new LNG ship orders globally, totaling 11.59 million cubic meters, a significant year-on-year increase of 371%.
In 2018, the international shipping and shipbuilding market was at a low level and fluctuated, and market competition remained fierce. In addition to the Export-Import Bank of China, some financial institutions continued to weaken credit support for my country's key shipbuilding companies. In particular, some private companies with good operating conditions were not allowed to issue ship advance payment guarantees or extended the issuance cycle, which caused difficulties for shipyards to receive orders and increased corporate costs. Currently, new ship prices are generally low, and shipbuilding companies have a large liquidity gap. In order to ensure the continuity of shipbuilding production, enterprises are increasingly dependent on financing, but some financial institutions adopt a "one size fits all" approach to financing for shipbuilding enterprises, and the implementation of differentiated credit policies is not obvious.
In 2018, the international new ship market demand is still sluggish, and new ship prices are at low levels. my country's marine steel plate prices quickly climbed to 4,900 yuan/ton in the first half of the year, a year-on-year increase of more than 30%, and then remained at high fluctuations, remaining at 4,800 yuan/ton at the end of the year, which brought great cost pressure to my country's shipbuilding companies. In addition, the rigid increase in labor costs, financial expenses, and logistics costs also eroded the profits of shipbuilding companies. The profitability of the shipbuilding industry has dropped significantly. Statistics show that in 2018, my country's shipbuilding industry enterprises achieved a total profit of 9.14 billion yuan, a year-on-year decrease of 35.5%.
In 2019, the environment faced by the global new shipbuilding market is still complex, with opportunities and challenges coexisting. In recent years, the growth rate of the fleet has continued to be lower than the growth rate of maritime trade, and the global shipping market has entered a slow recovery state, which has created conditions for the new shipbuilding market to come out of the trough; new international environmental protection regulations are about to enter an intensive period of effect, and some old ships are likely to be forced to be dismantled in advance due to poor economics, which is expected to bring orders to shipbuilding companies. my country will continue to focus on winning the battle to defend the blue sky. At the same time, in order to satisfy the people's yearning for a better life, imports will continue to expand, which will increase the market demand for some ship types. However, the new shipbuilding market also faces many challenges. Based on the research results of experts from all parties, it is initially estimated that the global new ship transaction volume in 2019 will be around 70 million deadweight tons; the shipbuilding completion volume will be around 90 million deadweight tons; the number of orders on hand at the end of the year is expected to remain at the level of 180 million deadweight tons. In 2019, my country's shipbuilding completion volume is about 35 million. million deadweight tons, new orders received are about 30 million deadweight tons, and orders on hand at the end of the year are about 85 million deadweight tons.
In 2018, the "Special Administrative Measures for Foreign Investment Access (Negative List) (2018 Edition)" was released. The document canceled the requirement that the design, manufacturing and repair of ships (including segments) must be controlled by Chinese parties. Previously, our country had fully liberalized the field of ship supporting and offshore engineering equipment. This move marked the realization of comprehensive opening up of our country's shipbuilding industry. The realization of comprehensive opening up of our shipbuilding industry conforms to the trend of economic globalization and meets the practical needs of my country's industrial development. It has a positive impact on the high-quality development of my country's shipbuilding industry. The entire industry should deeply understand the significance of the shipbuilding industry's comprehensive opening to the outside world, strengthen situation analysis, grasp the development direction, seize the new opportunities brought by the shipbuilding industry's comprehensive opening, accelerate technological innovation and product optimization and upgrading, strengthen talent training, extend the industrial chain from manufacturing to R&D and service, enhance market competitiveness, and promote the high-quality development of the shipbuilding industry.
Faced with the ongoing downturn in the current shipping market, rapid rise in raw material prices and labor costs, and difficulties in recruiting workers for hard-working and risky operations, the task of transforming and upgrading the shipping industry is even more urgent. Backbone shipping companies must thoroughly implement the spirit of the "Action Plan for Promoting Intelligent Transformation of Ship Assembly and Construction (2019-2021)" and the "Action Plan for Intelligent Ship Development (2019-2021)" documents to promote the intelligent development of ship assembly and construction. Through the deep integration of informatization and industrialization, we will continue to promote cost reduction and efficiency improvement, and continuously improve the quality, efficiency and effectiveness of ship construction. At the same time, in the face of fierce market competition, we must keep up with the requirements of new international shipbuilding norms and standards, closely contact ship owners, build brand ship types, and continue to maintain our leading advantage in the main ship types. We must adhere to the innovation drive, adapt to market structural changes, increase research and development investment, and continuously achieve new breakthroughs in the segmented ship type market.
Currently, my country's shipbuilding industry is in a critical period of structural adjustment, transformation and upgrading. The industrial concentration of the industry is increasing year by year. The concentration of new ship orders to key enterprises is becoming more and more obvious. A group of high-quality shipbuilding companies with high product quality, strong management capabilities, and good operating efficiency are coming out of the trough. It is recommended that my country's financial institutions implement differentiated management based on the actual development of the shipbuilding industry, implement the credit policy of "one enterprise, one policy", and help high-quality companies tide over difficulties. Encourage qualified Chinese-funded financial leasing companies to establish a two-way communication mechanism with domestic high-quality shipping companies, explore win-win cooperation models, and jointly promote the high-quality development of the shipbuilding industry.
With the transformation and upgrading of my country's energy consumption structure, the demand for clean energy, especially natural gas, will maintain steady growth. Currently, my country imports natural gas through land pipelines and sea transportation, and its external dependence exceeds 43%. Compared with sea transportation of natural gas, land pipeline transportation is easily affected by complex factors such as geopolitics and self-use in special periods, and the continuity of gas supply cannot be guaranteed. Sea transportation has the characteristics of low cost, convenient connection to receiving stations, and is conducive to strengthening reserves and peak shaving. However, at present, the capacity of my country's own LNG transport fleet is far from meeting the requirements of national energy security transportation. It is recommended that relevant national departments combine the needs of national energy strategies to coordinate the coordinated development of natural gas source project negotiations, natural gas fleet transportation, natural gas equipment construction and natural gas consumption terminals, and support capable shipping companies to carry out LNG ship construction and technology research and development.
While encouraging offshore engineering equipment construction enterprises to innovate the disposal of inventory of offshore engineering equipment, the focus is on guiding offshore engineering construction enterprises to work together to form a joint force to achieve equipment disposal goals. On the one hand, organize construction enterprises, financial institutions, oil service companies and other relevant units to jointly establish funds or asset management companies, establish benefit sharing and risk sharing mechanisms, receive inventory equipment, realize shipyards out of service, alleviate the survival pressure of offshore engineering construction enterprises, and also achieve batch maintenance of equipment and reduce maintenance costs. On the other hand, focus on the Middle East, In countries and regional markets such as Brazil and Mexico, it helps funds or asset management companies establish strategic partnerships with local oil and gas companies or oil services companies, leasing inventory of offshore equipment for local oil and gas development, and at the same time giving oil and gas companies the right to acquire related equipment.