Even though a U.S. port charge aimed at vessels connected to China has caused some hesitation among boat purchasers, prominent maritime firms such as MSC, which ranks first globally, are choosing to keep collaborating with Chinese shipbuilding yards. They argue that these yards' competitive edge is difficult to replicate quickly in the near future.
Even with the U.S.'s efforts to contest China’s leadership in international shipbuilding, MSC Senior Vice-President Marie-Caroline Laurent stated at the Nor-Shipping Forum in Oslo that port fees will not deter them from placing additional orders with Chinese shipyards, according to reports from TradeWinds, a maritime news source.
She noted it was positive to observe the US attempting to rejuvenate its shipbuilding sector, however, she emphasized that "new ships will be necessary to support the energy transition."
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As he stated, 'The majority of these ships nowadays are constructed in China,' Laurent mentioned. 'They possess both the expertise and capacity; therefore, this is where we will keep producing our ships.'
The International Maritime Organization aims for the worldwide shipping sector to reach net-zero emissions within approximately two decades. As a result, businesses are progressively channeling funds into decarbonization technologies—including eco-friendly fuels—causing a significant increase in the number of new vessel orders in recent times.
Laurent stated that reviving America’s shipbuilding industry wouldn’t be an immediate process, and achieving this goal would necessitate government financial support as well as maintaining certain key resources.
This is indeed an intriguing discussion to engage in, even with the US administration," she stated. "It’s unlikely to alter our broader approach to shipbuilding at this point.
MSC, headquartered in Geneva, has ships currently being built at various prominent Chinese shipyards such as Zhoushan Changhong International Shipyard, Guangzhou Shipyard International, and Hengli Heavy Industries.
He is not the sole shipping company executive stating that Chinese shipyards will be indispensable in the coming years.
Following media reports indicating that prominent Japanese shipping firm Mitsui O.S.K. Lines (MOL) might halt orders for LNG carriers from China, the company stated towards the end of last month that they would evaluate options across both Chinese and South Korean shipyards.
"In light of the present geopolitical situation, the firm will apply careful consideration when choosing shipyards for potential new LNG carrier orders," the statement read.
Only a finite number of shipyards globally have the capability to construct top-tier LNG carriers for reliable liquefied natural gas transport, with Chinese yards being vital allies in securing diversified and flexible supply channels.
Geopolitical strains have reduced new vessel orders this year. According to shipping data provider Clarksons Research, new orders for ships totaling 12.6 million compensated gross tons were made during the initial four-month period of the year—a decrease of 48 percent compared to the same timeframe last year.
China obtained 54 percent of these orders, trailed by South Korea with 22 percent.
Ren Letian, chairman of China’s biggest privately owned shipbuilder, Yangzijiang Shipbuilding, stated that recent U.S. trade policies and worldwide tariff moves have led “our clients to take a cautious stance, delaying their purchase choices.” This was mentioned as the Singapore-traded firm announced its quarterly financial performance at the end of last month.
By May 22, Yangzijiang had recorded US$290 million in new vessel orders this year - around 5 per cent of its annual target.
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The article initially appeared on the South China Morning Post (www.scmp.com), which is the premier source for news coverage of China and Asia.
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