State-owned China Shipping is planning to order up to 20 new supertankers for the fleet of a joint venture aimed at giving Beijing more control over its energy supply chain but which will add to the vessel glut in the struggling freight market.
A Chinese ship buying spree would provide much needed business to the domestic shipbuilding market, the world’s second largest. Hundreds of small to mid-sized shipyards are teetering on the brink of bankruptcy as foreign orders dwindle and domestic lenders slash credit.
But any new vessels will add to an already oversupplied global shipping market which is struggling with dwindling clients and falling rates.
