Maintaining Strategic Resolution to Be a Strong Enterprise

"Since the beginning of this year, the situation of the global shipping and marine industry market has deteriorated further due to the transformation of the momentum of global and Chinese economic growth and the continuing imbalance between supply and demand in the shipping market. From January to October this year, the global order for new vessels was 25 million tons, down 74% from the same period last year. The turnover of marine equipment was only about $4 billion, down 56% from the same period last year. The price of new ships and marine equipment was further explored. It became more difficult for shipping enterprises to take orders and make profits. China's Shipbuilding Industry Economy
In an interview with Bao Zhangjing, director of the Center for Market Research, he said that 2016 was the most stressful year for China's shipbuilding enterprises since the outbreak of the international financial crisis. On the one hand, it was reflected in the unprecedented depression in the international shipping and marine industry market. On the other hand, the capital accumulated during the booming period of shipbuilding enterprises had been exhausted and most of them were in a deficit state. We also have to endure all kinds of harassment from shipowners, and the survival status of enterprises is very worrying.
Bao Zhangjing believes that the plight faced by Chinese shipbuilding enterprises today is essentially different from that of eight years ago. At the beginning of the financial crisis, shipbuilding enterprises had many policy expectations, overshoot rebound expectations, wait-and-see expectations, capital speculation expectations, abundant funds and hand-held subscriptions.
The single guarantee and the lag of the shipping industry made the overall economic operation still in the ascending channel at that time; nowadays, the policy has been exhausted and the effect is short and limited, the deep contradictions and systemic risks of the industry have been fully exposed, a large amount of speculative capital has been captured in the early stage and further deepened the downstream of the industry - the anticipation of excess capacity in the shipping market, the lack of orders and the serious deviation of ship prices. Value, coupled with weak macroeconomic recovery and lack of effective demand momentum in the industry.
Bao Zhangjing said that 2016 is a difficult year for the shipping industry, and it is also the time for the shipping industry to enter the real Qing Dynasty. The bitter winter (after the cold winter) has just begun. At present and for a long time in the future, China's shipping enterprises have to face customers whose market has been at a low ebb for a long time.
Looking at the reality, we should also follow the law of market development, maintain strategic strength, strengthen our hearts, and be ready to live a long and hard life and fight a long and arduous war.
The continuous deterioration of the shipping market and the development of the industry are at a critical juncture
As a highly international and market-oriented ship market, the rise and fall of the market has always been subject to fluctuations in the world economic cycle. Whether the world economy can continue to recover and strengthen is the fundamental condition for the ship market and the shipping industry to get out of the depression. Whether the supply-demand relationship of the shipping market can be effectively and substantially improved is the direct factor affecting the recovery and warming of the ship market.
From the perspective of the global economic development environment, influenced by the rise of international trade protectionism, isolationism and populism, the "de-globalization" has brought many negative impacts on the world economy; the expectation of the Federal Reserve interest rate increase, the regression of the process of Britain's separation from Europe and European integration, the increasing financial risks of emerging economies, and the sharp fluctuation of commodity prices, etc., have added to the economic trend. More uncertainty. In the future, the world economic recovery still lacks momentum and downward pressure is still great. International trade and global maritime trade will be greatly hampered by this. Bao reiterated that the world economy, international shipping, international shipping market and shipbuilding industry are a complete ecological chain. As the economic side of the top of the ecological chain, if the development trend is not expected to be strong, it will certainly restrain the later recovery of the shipbuilding market and industry.
"From the perspective of the development of international shipping market, since the outbreak of the crisis, the growth rate of global shipping capacity has been significantly higher than that of maritime volume. Overcapacity has been accumulating in the past eight years. It is too early to talk about the improvement of supply-demand relationship of shipping capacity." Bao Zhangjing believes that although the global handheld ship orders have been declining for many years and the dismantling of old ships is at a high level, it is expected that the global new shipping capacity will still be higher than the demand in 2017, and the supply-demand relationship will not materially improve. In addition, in view of the recent sharp rise in BDI, Bao Zhangjing said that this is only a short-term behavior of market fluctuations, including seasonal factors and some local non-market factors, will not change the long-term judgment of market development. In view of the development of the world shipping market in 2017, he said that in view of the above economic and shipping market development judgments, and considering the impact of the current second-hand ship market and the resale ship market on the new shipbuilding market, it would be difficult to reverse the volume and price of new shipbuilding next year, and that the volume of new shipbuilding orders would remain very low and the annual turnover would be difficult to exceed 35 million tonnes. New ship prices will remain low, which does not exclude the possibility of further slight downward exploration, and the global marine equipment market will remain at a low ebb.
In addition, Bao Zhangjing also told reporters that the adjustment of the market has really evolved into an industry crisis. Faced with insufficient orders, frequent withdrawal of orders, change of orders and various difficulties from shipowners, but also to bear a large number of ships and marine equipment delivery can not go out of the huge capital squeeze, almost all existing shipbuilding enterprises have been in a difficult position to survive. Really become the primary issue of development.
Devote oneself to practice and reshape new competitive advantages in the market
"The situation facing shipbuilding enterprises today is related to external objective market changes and their original choice and development strategy. Facing the crisis, we can only go forward bravely. At this time, we need the strength of development of shipbuilding enterprises, and we need to seek opportunities from the crisis." Bao Zhangjing said that under such circumstances, China's shipbuilding enterprises should take a bigger view.