China shipbuilding industry struggles to keep afloat

[NANJING] Chinese shipbuilders have been sailing towards bankruptcy in recent years, with China trying to consolidate the industry and bail it out from the woe of overcapacity.

With delays in deliveries, order cancellations and price decreases for newly-built vessels, shipbuilding firms have been in a slump since late 2008, when the global financial system was in freefall.

Cash-strapped shipping companies froze expansion plans by scrapping or delaying orders. The euro crisis from late 2009 made the situation even worse.