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China Newbuilding Market Review

China Newbuilding Market Review

China saw a 14% increase in ship completions compared with the previous year. The amount of recently received orders and the number of orders in stock both increased significantly over the past year by 68%. The number of orders in-hand increased by 21% when compared with the previous year, and 93% of these orders were for export. Additionally, the rise in high-tech ships shows that the order structure for the entire Chinese shipbuilding sector has improved. The Chinese shipbuilding sector generated almost $24 billion in revenue with a profit rate of 4.4% in the first half of this year, setting a new record.

We had the chance to get the latest update from Professor Liu Xunliang, Co-founder and managing director of of China Newbuilding Price Index Co., Ltd.

The 195th edition of the China Newbuilding Price Index (CNPI), released on September 30, continued its upward trend by climbing 3 points to reach a new high of 1,058 points, reflecting a year-on-year increase of 0.6%. This marks the highest level since the inception of the CNPI in 2011.

The tanker index CNTPI continued its upward trend, rising by 0.8% to reach a new all-time high of 1,167 points. The drybulker index CNDPI also experienced a growth of 0.3%, reaching 1,069 points. However, the containership index CNCPI witnessed a slight decline for the first time since its previous rebound in January, decreasing by 0.1% to settle at 1,075 points.

In the September benchmark ship-type valuation, dry bulk carriers experienced a widespread increase, although there was a significant disparity in the magnitude of growth, ranging from 0.1% to 0.9%. Oil tankers also witnessed continued growth, with Suezmax exhibiting the highest month-on-month increase of 1.5% and a remarkable year-on-year surge of 7%. Conversely, there was a decline in the valuation of certain container benchmark ships. Notably, the benchmark ship type for large containerships changes from 13,952teu/conventional fuel to 14,480teu/LNG dual-fuel.

Dry Bulk Carriers

Among the five benchmark ship types in CNDPI, Handysize witnessed a month-on-month increase of 0.7%, Ultramax experienced a 0.3% rise, Kamsarmax observed a marginal 0.1% rise, Capesize demonstrated a 0.9% rise, and Newcastlemax recorded a moderate increase of 0.6%.


The valuations of the five benchmark ship types continued to climb, with MR up 0.3%, LR1 up 0.6%, LR2 up 0.8%, Suezmax up 1.5%, and VLCC up 0.4%


Of the six benchmark ship types of containerships, 1100teu edged up 0.2%, 1900teu fell 1%, 2700teu fell 1.7%, 5,500teu edged up 0.1%, 7,000teu rose 0.6%, and 14,480teu dual-fuel entered the benchmark ship type valuation for the first time in September.

The maritime sector is about to reveal some of the hidden levels of operational efficiency by placing a price on carbon, either directly or indirectly. Denser seaborne trade volumes, rather than operational upgrades or decarbonized fuel supply, may result in the greatest reductions in greenhouse gas emissions. The maritime industry will eventually require new, greener fuels. However, boosting energy efficiency is usually the main goal of the first steps. Leaders are investing in digital competencies that are starting to function as entry barriers. Many shipowners are investing in brand-new vessels with dual-fuel engines, but the only ones who can offer green transportation are those who enter into long-term fuel offtake agreements with alternative fuel suppliers. It might not be enough to simply own vessels with dual-fuel capabilities to take advantage of the industry’s energy shift as a value-generating opportunity. For owners that do not operate their own vessels, it may result in operational challenges, resulting in higher expenses but little added value. The competitive landscape is expected to change when the profit potential of sister vessels depends on the operational and business models of different owners.

INTLREG could guide vessel owners to analyze and identify the best solutions for an efficient and sustainable propulsion system.

Note: The provided version is an abridged one. For more comprehensive information, please refer to the CNPI website.

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