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Notes
- 1.
Deadweight tonnage, or DWT, is divided into gross DWT and net DWT. Gross DWT = displacement when the ship is fully loaded-light weight; net DWT (gross tonnage of the cargo) = gross DWT-the weight of oil, water, staff and food. Compensated gross tonnage, or CGT, is the product of ship’s gross tonnage multiplied with the coefficient of CGT. As the revision of ship’s gross tonnage according to the complexity of the ship, CGT reflects the workload of shipbuilding. Regular ships are simple, while special ships are complicated and of large workload, which means building special ships produces more added value; therefore, shipbuilding capacity should not be solely based on the tonnage of ships.
- 2.
China Shipbuilding Statistical Yearbook 2014, p. 6.
- 3.
During WWII, America’s shipbuilding capacity reached an incredible high. 141 aircraft carriers and more than 10,000 vessels of various kinds were built or refitted. However, in the twenty-first century, shipbuilding industry almost vanished in America. In 2013, it built only 33 vessels, or 100,000 deadweight tons; while the global output was 108.20 million deadweight ton, which means America’s share is smaller than 0.1%. Why has shipbuilding in America fallen so fast? And what are the consequences? These are the questions worth pondering.
- 4.
Before 2008, both number and tonnage of ships completed were increasing. The growth rate of the tonnage is higher than that of the number, which means the size of ships built was growing.
- 5.
Though China ranked high in terms of new orders, completed ships, and orders in hand, Korea still led in aspects such as value of orders, added value of products, and technical content. Korea is more competitive in areas like shipbuilding specification, ship design, supporting equipment, and production technology. China enjoys low labor cost and is competitive in markets of bulk carrier, container ship, and tanker.
- 6.
On March 24, 2014, speech on the annual meeting of China Development Forum, by Su Bo, deputy minister of Ministry of Industry and Information Technology.
- 7.
“Capacity Utilization Rate of Chinese Shipbuilding Industry Was Only 50% in the First Three Quarters”, China Securities Journal, November 8, 2013.
- 8.
See Chap. 1 for categorization of overcapacity.
- 9.
According to microeconomics, market is of the following four types: sufficient competition, monopolistic competition, oligopoly, and monopoly.
- 10.
Statistics of economic operations of ship-building industry in the first half of 2014, by China Association of the National Shipbuilding Industry.
- 11.
China Ship News, April 10, 2014.
- 12.
China Statistical Abstract 2015, p.176.
- 13.
In 2013, ship-building industry consumed 11 million ton of steel, down by 8.3% on a YOY basis. China Shipbuilding Statistical Yearbook 2014, p.30.
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Xu, D., Liu, Y. (2018). Does Shipbuilding Industry Suffer Overcapacity?. In: Understanding China's Overcapacity. Springer, Singapore. https://doi.org/10.1007/978-981-13-0881-9_6
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