China was one of the leading shipbuilding country for particulars types of ships. In 2007 shipbuilding accounted for 23% of worldwide total new building orders. Top was South Korea which accounted for 33%.
Due to the slump economy worldwide ship building order has dropped by 37% comparing to that China's order dropped by 44%. It is probably due to the fact China is specialized in building only certain types of ships and mostly the bulk carriers. Worldwide decline in shipping industry has hit hard bulk carrier market.
Analysts say that the trend will continue for at least two years more and ship manufacturing industry will be hit hard by the effect of worldwide new building slump.
The irony is that it is a cycle that continues. Due to slump in new building in 5 years time shipping industry will face crisis for bulk carrying vessel and the market will be bullish again.
Shipping community only can hope that the sailing remains smooth during this choppy economic marked.
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