Recently, the Industry Association of China -ChinahShippingpAssociationtion) announced the economic performance of our country's shipbuilding industry in 2022, and gave forecasts and suggestions on the 2023 development of our country's shipbuilding industry.

Our country shipbuilding international market share continuously 13 years ranks first in the world

In 2022, the economic operation of our country's shipbuilding industry is generally stable. Shipbuilding market share remains the world's leading, high-end equipment made new breakthroughs, industrial chain supply chain resilience and safety level, marine engineering equipment inventory significantly improved, the quality of economic operation significantly improved.Specifically, it has six characteristics:

First, the international market share continues to lead, the competitiveness of backbone enterprises increased.In 2022, the international market share of shipbuilding of our country has ranked first in the world for 13 years in a row, and the status of shipbuilding power has been further consolidated. Our Country Shipbuilding finished volume, New Order Quantity, hand-held order quantity take up 47.3% , 55.2% and 49.0% of the world total by deadweight tonnage respectively. Our country's leading shipbuilding enterprises maintain strong international competitiveness, with 6 enterprises in the top  10 of the world's completed shipbuilding, new orders and hand-held orders.

Second, new breakthroughs have been made in high-end equipment and the rapid growth of ships.In 2022, our country's shipping enterprises continue to increase r & D efforts, and make new breakthroughs in the field of high-tech ships and marine engineering equipment. High-end ship type to achieve batch delivery. The delivery of 100,000-ton marine engineering equipment including large-scale intelligent fishery aquaculture industrial vessels has been realized. Green power ships accounted for 49.1% of new orders for the whole year, a record high level.

Third, the application of domestic supporting products has been accelerated and the safety level of the industrial chain has been enhanced.The loading rate of home-made marine main engine and other supporting equipment continues to increase. The high-end research and development capability of marine products has been continuously improved. All large-scale Knock Nevis crack arrest plates have been replaced by domestic products, and the domestic production rate of dual-phase chemicals has increased from less than 50% to more than 90% . Industry chain supply chain security has improved significantly.

Fourth, the demand for offshore oil and gas equipment has expanded, and“De-stocking” has achieved remarkable results.In 2022, the international oil price fluctuated at a high level, driving the global offshore oil and gas equipment market demand to expand, the domestic marine engineering equipment enterprises seize the opportunity, “Destocking” achieved positive results.

Fifth, seize the market opportunity to improve the performance of the industry.In 2022, shipyards will reduce costs and increase efficiency by strengthening the plan management of large shipbuilding nodes, implementing intelligent transformation of production lines and strengthening cost management. From January to November, the profit margin of main revenue rebounded to 3.0% .

Sixth, the structural adjustment has achieved remarkable results, and the new ship order quality continues to improve.In the year of 2022, our country's shipping enterprises have consolidated their leading position in the market of ship types and consolidated the base of new ship orders. In particular, major breakthroughs have been made in the field of large LNG carriers, with the international market share of new orders for large LNG carriers exceeding 30% for the first time. The structure of new ship orders was optimized and improved.

The 2023 of our country's shipbuilding industry will continue to maintain a steady development trend

China Shipping Association believes that our country's shipbuilding industry has been in a new period of recovery. Our 2023 of finished ships will exceed 42m DWT, new ship orders will be about 40m-50m DWT, and hand-held ship orders will remain at about 100m DWT.

In view of the situation and challenges faced by China's 2023 shipbuilding industry, the China Shipping Association (CSA) makes four suggestions:

First, we must make every effort to implement safety measures to ensure delivery of the vessel.The China Shipping Association predicts that the 2023 will be followed by two to three years, and our shipping enterprises will usher in the peak period of ship delivery. 2023 to 2024, which is a concentrated delivery period for large Knock Nevis. From 2025 to 2026, it is a centralized delivery period for large LNG carriers.

China Shipping Association suggested that shipyards should strengthen production planning and material matching management in an all-round way, insist on quality first and safety first, and ensure delivery of vessels with hand-held orders on schedule. We will fully implement the main responsibility of enterprises for work safety, strengthen work safety management throughout the process, ensure that production proceeds in an orderly manner, and ensure the safety of employees.

Second, improve quality and efficiency, grasp the rhythm to improve the quality of orders.In the past two years, the global new ship building market has remained active, with demand for different ship types developing in a rotational manner, and prices of new ships such as large Knock Nevis have increased significantly, with price differentials of tens of millions of dollars for the same type of ships within a year.

China Shipping Association suggested that shipyards should strengthen the dynamic tracking of the development of international shipping and shipbuilding market, avoid blindly following the trend, and combine the situation of their own hand-held ship orders and ship location arrangement, on the premise of ensuring the continuity of production of enterprises, optimize business strategy, grasp the order rhythm, further improve the quality of new orders.

Third, to guard against risks, strengthen the study and judgment to take countermeasures.At present, the external environment of the shipbuilding industry is becoming more complex and uncertain. Since the fourth quarter of 2022, the exchange rate of the RMB against the US dollar has continued to appreciate; the price of imported iron ore has reached US $116 per ton; the volatility of new vessel prices has increased, and the composite index of new vessel prices has experienced“Stagflation”, the price of some ship types has fallen.

China Shipping Association suggested that shipping enterprises strengthen market research, adhere to the risk-neutral concept, and strengthen cooperation in the upper and lower reaches of the industrial chain, the risks such as raw material cost and exchange rate change can be controlled by signing long-term purchase agreement with iron and Steel Enterprises and forward exchange settlement agreement with financial institutions.

In addition, new International Maritime Organization such as the IMO's existing ship energy efficiency index and the rating of the carbon intensity index for ship operations have come into force, and the revised IMO Greenhouse Gas Reduction Strategy for ships will be 2023 in July, china Shipping Association suggested that relevant shipping enterprises and research institutes should pay close attention to it and take measures to deal with it as soon as possible.

Fourth, explore innovation, resolve the contradiction of insufficient human resources.At present, the contradiction between the rapid growth of shipyard production and the shortage of labor supply in our country is increasingly prominent, which has become an important factor restricting the high-quality development of the industry.

The China Shipping Association suggested that the relevant government departments should attach great importance to it, organize in-depth studies, and increase policy support for the recruitment of ship enterprise employees and professional post training, etc. .

In the key areas of shipbuilding, we should study and innovate the training mechanism of ship and ocean engineering equipment specialized technical talents and skilled workers combined with the reform of vocational education. It is suggested that the key shipyards should reform the existing employment mode, explore measures to increase the number of their own workers, improve the treatment of workers and improve the working environment, so as to keep the staff stable and improve the technical level.

At the same time, China Shipping Association suggested that shipyards should steadily promote the application of intelligent manufacturing technology according to the existing foundation and conditions, so as to enhance production efficiency and alleviate the shortage of labor force.

The China Shipping Association believes that the 2023 of our country's shipbuilding industry will continue to maintain a stable development trend and contribute its own strength to stable growth, stable employment and stable exports.