Global ship Industry needs years to recover

It is reported that from 2003 to 2008, the world shipbuilding industry enjoyed six year bull market due to the speeding globalization, continuously flourishing macro economy & shipping market and the abundant liquidity in capital market. The breaking out of financial crisis in the H2 of 2008 pulled global ship industry down into the low altitude. The retreating macro economy and falling liquidity in credit market forced the shipbuilding industry to face the hardest time in the first half of 2009.
Since the H2 of this year, global ship industry started to bottom out, but was expected to spend long time recovering. Thanks to the stimulus policies by governments in the world, the liquidity crisis was abated and then, shipbuilding industry walked out of the bottom in June 2009. However, the uncertainties in macro economy recovery and the long production period decided that the return back of shipbuilding industry will cost a long period of time.
The shipbuilding center is removing to China. The large market scale, the advantage of labor cost and the upgrading technologies will rebuild China as the new shipbuilding center in the world, instead of Korea and Japan. And, China position in shipbuilding will continue improving along with China developing of economy.
Under the effects of global financial crisis, China’s shipbuilding sector fell down into deep adjustment too and faced problems like sharp shrink in new ship orders, over capacity and oversupply which can’t be handled in short term.
It’s the state stimulus policy that China shipbuilding industry might get out of the deep end firstly. China fixed the revitalization plan in ship industry earlier, giving a significant support to the industry. Under the situation, China’s new ship orders started rebounding largely since June 2009.