According to China State Shipbuilding Corporation, Dalian Shipbuilding, a subsidiary of China State Shipbuilding, jointly signed contracts with China Ship Trading and China Merchants Energy Shipping to build 5 0.306 million ton crude oil tankers and 5 0.115 million ton crude oil tankers.

On August 19, Hudong-Zhonghua Shipbuilding Co., Ltd., a subsidiary of China Shipbuilding Industry Corporation, together with China Shipbuilding and Industrial Trading Co., Ltd., and Tai Ping Shipping Co., Ltd., officially signed a contract for the construction of 5 13,000 TEU liquefied natural gas dual-fuel large container ships.

This is another batch of large container ship orders undertaken by Hudong-Zhonghua following the 4 14,000 TEU methanol fuel reserve large container ships in June.

According to the latest data released by Clarkson, a British shipbuilding and shipping analytics firm, in the first half of 2024, the global volume of new ship orders reached 903 ships/24.01 million corrected gross tons, with a total value of 80.3 billion US dollars. China undertook 615 ships/15.4 million corrected gross tons, with a total value of 48.2 billion US dollars, accounting for 64% of the global total orders (in terms of corrected gross tons).

If looking at June alone, China accounted for 78.2% of the global total orders for new ships (in terms of corrected gross tons).

Changjiang Securities released a research report stating that the container order has been booked until 2027-2028, and under normal circumstances, new orders are expected to continue until 2029.

Considering only the issue of aging, it is expected that there will be an additional 3.5-4.9 million TEU orders before 2030; at the same time, considering the issue of aging and environmental protection requirements, the number of additional orders will increase to 6.2-6.9 million TEU, accounting for 21-23% of the existing capacity. The container ship production capacity will reach saturation point before 2030.

Furthermore, the proportion of on-hand orders for oil tankers and bulk carriers is low, and the number of orders for green fuel-powered ships is small, which may bring greater opportunities for new ship orders in the future.

2025 will be a critical year for order fulfillment. The IMO carbon emission pricing scheme will gradually become clear, and there will be significant progress in the use of ammonia engines and the production of green ammonia, which will drive demand.

Chen Xianfan, an analyst at China International Capital Corporation, said that the shipbuilding demand will be good in the medium and long term, and combined with the replacement demand brought by aging and new environmental policies, the shipbuilding order volume will be stable and the price will continue to be prosperous. Similarly, 2024 will be a year when the high-priced ships are all delivered, and the shipbuilding companies' profitability is expected to be improved across the board.

Shipbuilding industry-related companies:

CSSC Offshore & Marine Engineering Group Co., Ltd. (00317): The industry as a whole is doing well, and in the first half of this year, production tasks have been fulfilled, with production volume and efficiency steadily improving. The company focuses on four areas: marine defense equipment, marine transportation equipment, marine development equipment, and marine technology application equipment. As of the end of 2023, the company has a total order contract price of approximately 55.76 billion yuan, of which the order contract for shipbuilding is 53.73 billion yuan, including 110 ship products and 2 offshore equipment, for a total of 3.4987 million deadweight tons, providing abundant on-hand orders for the company's future performance growth.