Chinese shipbuilding industry

by78

General
The sister ship of Adora Magic City has been named Adora Flower City (爱达·花城号). The name Flower City takes inspiration from the ship's future homeport of Guangzhou, which is known as the city of blossoms. The ship is currently in the fitting out stage and will be delivered at the end of 2026. Compared to her sister ship, the number of rooms has been increased to 2,130, capable of accommodating 5,232 guests.

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The navigation bridge section of Adora Flower City has been joined to the hull, which is now around 95% complete.

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antwerpery

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The US has blacklisted China’s largest shipping line and two shipbuilders over alleged links with the People’s Liberation Army, as Washington turns its attention to the country’s massive maritime sector.
Cosco Shipping Holdings Co. was named in a Federal Register filing on Tuesday, qualifying it as a Chinese military company as determined by the Pentagon, along with China State Shipbuilding Corp. and China Shipbuilding Trading Co. While the blacklist carries no specific penalties, it discourages US firms from dealing with those companies.
It also signals increased scrutiny of marine transport and shipbuilding as Donald Trump prepares to return to the White House. China has the world’s largest shipbuilding sector, producing more than half of merchant vessels globally, while the US industry has virtually collapsed over the last generation.
Chinese shipbuilders accounted for almost 60% of the worldwide orderbook in the first quarter of last year, according to shipbroker BRS. The US’s nervousness over this dominance comes as shipping lines and ports become increasingly important as arenas of geopolitical competition, with Covid-19 and its aftermath exposing the fragility of global supply chains.

Washington telegraphed its unease over China’s shipbuilding industry at Senate hearings last year. The US builds only one container ship for every 359 such vessels that China constructs, Raja Krishnamoorthi, a Democratic congressman for Illinois, said at the time. The latest Pentagon blacklist also included Tencent Holdings Ltd. and Contemporary Amperex Technology Co. Ltd., as well as Chinese oil major Cnooc Ltd.

Cosco shares fell as much as 4.4% in Hong Kong on Tuesday, outpacing a decline in the city’s benchmark stock index, while Cnooc was down as much 1.6%.
The two companies didn’t respond to requests for comment.Both Cosco and Cnooc have been previously targeted by Washington. Cosco was sanctioned in 2019 for hauling Iranian oil, with those penalties lifted in 2020. Cnooc was one of the earliest Chinese state-owned enterprises to be hit with US sanctions and was also added to a Pentagon blacklist in 2021.
Cnooc, meanwhile, has two onshore shale oil and gas projects in the US, two deepwater projects and interests in several other exploration blocks in the US Gulf of Mexico, according to Bloomberg Intelligence. Rising tensions with Washington could cause the company to reassess its ownership of those assets, it said in a note
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The blacklisting of the world’s largest yard group, China State Shipbuilding Corp (CSSC), and some of its affiliates has surprised the shipbuilding community and raised concerns that it could raise costs for US shipping. CSSC, China Shipbuilding Trading Co (CSTC) and Guangzhou Wenchong Shipyard were singled out by the US Department of Defense for alleged links to the Chinese military, along with giant Chinese shipowner Cosco.
The companies have not been sanctioned, with the initiative designed to discourage US companies from conducting business with the listed entities.


Multiple shipbuilding players told TradeWinds they believe there will be little impact on CSSC’s commercial shipbuilding activity, although there could be wider consequences for the wider shipping industry over time. One source interpreted that even if CSSC, CSTC and Wenchong were sanctioned, the only impact would be to block the purchase of “critical” equipment from any US company. “But shipbuilding companies in China including shipyards under the control of CSSC do not buy equipment from the US,” he said. Shipbuilding players are baffled why Guangzhou Wenchong has been singled out when there are more than 10 shipyards that come under the control of CSSC.


Several of them are also engaged in building military and navy vessels. One shipowning company with newbuildings on order at CSSC’s shipyards said it was not too worried for now. It said legally the moves did not affect shipbuilding contracts but added that it was monitoring the impact of the actions, especially the ripple effects, with corporates taking preemptive actions.


The US action on CSSC sparked a spike in the share price of South Korean shipbuilders and China’s privately owned Yangzijiang Shipbuilding. HD Hyundai Heavy Industries saw its share price shoot up by more than 5% to KRW 304,000 ($208), while Singapore-listed Yangzijiang rose more than 3% and reached an all-time high of SGD 3.07 ($2.24).


Banchero Costa analyst Ralph Leszczynski said restrictions of this kind tend to end up being bullish for freight rates and ship values and create inefficiencies. He said if soybeans from the US can only be carried by Japanese or South Korean-built bulk carriers, freight rates would skyrocket to $100,000 or $200,000 per day. “I find it hard to believe that they would end up targeting all vessels ‘built by CSSC yards’, as the majority of currently trading vessels of any type are built by them,” said Leszczynski.


He added that such a move would result in a huge increase in the price spread between South Korean and Chinese-built vessels.
He said: “Some small family-owned shipowners would be happy to continue ordering at CSSC shipyards and have lower breakevens, while US owners will be forced to bid for scarce slots in South Korea.” Leszczynski thinks if shipping companies shun building ships at CSSC shipyards, it would create another two-tiered market in the shipping industry akin to the shadow fleet that is serving Russian trades.


The Dubai-based shipping analyst thinks the US action may easily backfire on US shipowners and exporters if it drives them to higher costs than the rest of the market. This is especially true when compared to Brazilian soybeans, which could still be easily carried on Chinese ships.“This would drive up inflation in the US if only selected container ships are allowed to import containerised goods into the USA,” he added.“With the changes in the playing field, suddenly an order at a CSSC shipyard could be a hot potato while those holding orders at South Korean yards are winners as those slots are now suddenly worth more.

“If this plays out like that, it also opens a window of opportunity for ‘something new’ like Vietnamese yards or Turkish yards or Indian yards, given the limited scope for South Korea and Japan to expand their shipbuilding capacity.
 

GiantPanda

Junior Member
Registered Member
Two high-resolution images of the Adora Flower City.

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Utterly Amazing! It was only four years ago that China laid down the keel for its first giant cruiseliner - a class it never made before. I don't think Japan or Korea ever made one. Definitely not one of the two Adoras' size.

The ability of Chinese industry to master new types and then swiftly produce them is simply incredible.
 

GulfLander

Captain
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"The spokesperson of China’s Ministry of Commerce has responded to that. Let me stress that the Biden administration’s Section 301 investigation against China targeting the maritime, logistics, and shipbuilding sectors seriously violates WTO rules and is purely protectionism. China strongly deplores and firmly opposes it, and has made clear our position more than once. 

Various US studies show that the US shipbuilding industry lost its competitive advantage many years ago due to over-protection. The growth of relevant industries in China is a result of companies’ tech innovation and participation in market competition. It also benefits from China’s fully-fledged industrial manufacturing system and vast domestic market. The Biden administration blaming its own problems on China lacks factual basis and economic common sense. We urge the US to respect facts and multilateral rules, immediately stop its wrongdoings and return to the rules-based multilateral trading system. China will closely follow the investigation and take all measures necessary to firmly defend our rights and interests."
 
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