(Yicai) Feb. 2 -- China’s ship production may increase to 45 million deadweight tons this year, up 6.3 percent on last year when it accounted for more than half of the global total, according to new figures.

The country’s shipbuilders are expected to receive new orders for about 55 million tons in 2024, compared with 71.2 million in 2023, when output made up nearly 67 percent of new tonnage worldwide, data released by the China Association of the National Shipbuilding Industry showed today. Orders in hand will reach over 130 million tons.

New tonnage from Chinese firm jumped 12 percent last year, while new orders surged 56 percent, according to industry ministry figures. Already-held orders tallied 139.4 million, up 32 percent and accounting for 55 percent of the world's total.

Last year, the Chinese shipbuilding sector ranked first globally by new tonnage, new orders, and orders in hand for the 14th consecutive year, according to the CANSI.

As one of the world's major ship-building nations, China’s many shipyards and shipbuilders turn out various kinds of vessels, including for cargo, containers, crude oil, and cruises.

The association said that with the increase in the total orders and the share taken up by high-tech vessels, production and operational complexity have also increased, piling pressure on shipbuilders over delivery guarantees. In addition, the risk of volatility in the steel, foreign exchange, and shipping markets has risen, leading to greater uncertainty about the market environment.

The CANSI said shipbuilders should strengthen their intelligentization and digital transformation, optimize production processes, and enhance the efficiency of final assembly and construction. They should also strengthen production plan management, improve their supply chains, and ensure high-quality and on-time deliveries. 

The association also suggested shipbuilders strengthen collaboration along the supply chain, and control the risks associated with raw material costs and exchange rates by signing long-term purchase agreements with steelmakers, using futures as a hedging tool, and penning forward exchange settlement contracts with financial institutions, and other means.

Studies of the global maritime transportation and shipbuilding markets should also be toughened to support production and operations, the sector's healthy development, and government decision-making, the CANSI noted.

Editor: Martin Kadiev