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China has announced a significant RMB10 trillion

China has announced a significant RMB10 trillion ($1.4 trillion) stimulus package to boost its economy, which has been struggling to meet its 5% growth target. This move comes amid growing trade tensions with the US and aims to support local governments through debt relief and bond issuance. While the package doesn't directly target consumer spending, additional measures are being considered. The Chinese currency weakened slightly, and early signs suggest that previous stimulus efforts may be starting to take effect.

Shifting our focus from China's economic stimulus to the performance of Chinese shipyards, they experienced a 17% y-o-y surge in new orders across the four main sectors (BC, Tanker, Gas, and Container). This increased their market share to 74%, up from 63% in 2023's orders. While the total number of orders placed in the first 10 months of 2024 (1,449 vessels) is similar to previous year, Chinese shipyards have gained momentum in 2024, securing 1,071 orders compared to 915 during the same period in 2023. Chinese shipyards dominate the Container and BC sectors in 2024, securing 90% of total Container orders and 81% of total BC orders. The Tanker sector follows with 72% of orders placed in Chinese shipyards. Even in the Gas sector, China maintains a significant 44% share.

To gain insights into the significant shift in the global shipbuilding industry, with China's ascent and Japan and S. Korea's decline, let's look back to vessels delivered in 2008 (examining the number of ships). In that year, 480 bulk carriers and GC vessels (>=10,000 DWT) were constructed globally. Japan was the dominant player, building 47% of these ships, while China secured a 42% share. S. Korea was the dominant player in the tanker sector in 2008, building 46% of total tankers. China and Japan trailed behind, each with approximately 20% market share. Of the 468 container vessels built in 2008, Chinese shipyards constructed 38%, while S. Korean and Japan shipyards built 31% and 9% accordingly. S. Korea's dominance in the gas sector was clear in 2008, as they built 62% of vessels. China and Japan, in contrast, had a much smaller share of only 7% and 25% respectively.

China has significantly increased its market share across all segments for vessels built in 2024. While Japan's share has declined to 31% for bulk carrier and general cargo vessels, Chinese shipyards are responsible for building 62% of these vessels. A role reversal has taken place in the tanker sector for the vessels built in 2024. Chinese shipyards are the leading builders of tankers, accounting for 46% of the total. S. Korea's share has declined to 21%, while Japan is responsible for 18%. In the container market, Chinese shipyards have significantly increased their market share, building 65% of vessels in 2024. S. Korean and Japan shipyards, on the other hand, have seen their share decline to 27% and 8 %. In the gas sector, S. Korea remains the dominant player, building 63% of vessels in 2024. China has made substantial progress, increasing its share to 26% from 7% in 2008 built vessels.

China's dominance in shipbuilding is set to continue. In 2026, 70% of BC vessels added to the fleet will be built in China, significantly outpacing Japan. China's market share in the tanker sector is also projected to increase to 67%, further solidifying its position. In the container market, China's 64% share and Japan's 8% share are expected to remain relatively stable, while S. Korea's share will decline to 22%. In the gas sector, China's share is projected to soar to 35%, significantly reducing S. Korea and Japan's shares to 55% and 7%, respectively.

Sale and Purchase

Dry:

On the Capesize sector, Chinese buyers acquired the "Cape Laurel" - 180K/2010 Imabari for USD 28 mills. The 5-year-old Kamsarmax "CMB Permeke" - 82K/2019 Tsuneishi Cebu was sold for USD 34 mills to Greek buyers, while the 10-year-old Non-Electronic M/E "Energy Sunrise" - 82K/2014 Tadotsu was also sold to Greeks for around USD 23.5 mills. The Panamax "Capricorn First "- 75K/2005 Hudong Zhonghua changed hands for USD 8.9 mills. Last but not least, the Handysize "Arctic Ocean"- 36K/2010 Samjin was sold for USD 11.6 mills to Middle Eastern buyers, while the 4- year older "Miltiades II" - 31K/2006 Shanhaiguan was sold for USD 7.8 mills to Turkish buyers.

Tanker:

On the tanker sector, there is only one tanker sale to report. The J19 StSt "Golden Yosa" - 19K/2008 Fukuoka was sold for low USD 21 mills.

Xclusiv Shipbrokers Inc.