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Delivery delays hit Fujian yards

Delivery delays hit Fujian yards
THE volume of vessels completed in the Chinese province of Fujian dropped by 15% to 936, 265 dwt last year as a result of delivery delays, according to China Association of the National Shipbuilding Industry.

Delivery delays hit Fujian yards.

THE volume of vessels completed in the Chinese province of Fujian dropped by 15% to 936, 265 dwt last year as a result of delivery delays, according to China Association of the National Shipbuilding Industry.

However, the association expected the situation to improve in the first half this year on signs of a recovery in global shipping.

Last year, Fujian"s shipyards completed a total of 325 vessels, of which 186 were small-sized ships including barges, tugboats and fishing vessels.

By comparison, the value of completed vessels increased by 14.5% to Yuan17.3bn ($2.5bn) from Yuan15.1bn in the previous year, according to Cansi.

Some local shipyards had pushed back their deliveries as a result of the shipping downturn, Cansi said.

However, Xiamen Shipbuilding Industry, a leading Fujian"s shipyard that is mainly engaged in the production of 820 teu-2,600 teu containerships, 54,000 dwt bulk carriers and pure car/truck carriers, said the situation was not serious.

A Xiamen Shipbuilding Industry spokesman told Lloyd"s List that the shipyard only received one delay last year when Norwegian shipping company Leif Hoegh pushed back delivery of a PCTC from last November to January this year. The Xiamen Shipbuilding Industry spokesman said he was uncertain whether the market had bottomed out.

Cansi is optimistic over a rebound in completion volumes this year given an increase in the number of large-sized vessels scheduled for delivery from the shipyards.

Separately, Fujian"s shipyards bagged Yuan4.6bn worth of new orders for 55 vessels comprising 111,128 dwt last year, a decrease of 70% compared with 185 vessels in 2008, the association said.

It added that the global financial crisis led local shipyards to cut back investment in fabrication yard facilities by 43% year-on-year to Yuan1.7bn last year.

Cansi expected global shipping market to recover gradually in the first half of 2010 and predicted most of the ship types ordered at Fujian"s shipyards would be bulk carriers.

www.turkishmaritime.com.tr

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