Classification society DNV on Monday (19 August) published a Maritime Impact article on its Shanghai team that was set up to support the local shipbuilding industry as well as owners placing newbuild orders in China, particularly bulk carriers and tankers:

DNV has established a team of experts in China to provide efficient, timely and proactive support to the local shipbuilding industry as well as owners placing newbuild orders in China. The focus is on bulk carriers and tankers, the two ship types anticipated to see the most vigorous growth in the coming years.

China has been experiencing an exceptional shipbuilding boom since the global economy began recovering from the pandemic. While containerships have been dominating newbuild orders in recent years, the demand for new tankers and bulk carriers is soaring, driven by many new requirements older tonnage cannot meet, especially in the context of decarbonization and digitalization. In response, DNV has created a team of experts to provide fast and efficient information to Chinese designers, yards, cargo owners and shipowners, helping them understand and implement new requirements and technologies while assuring highest quality.

Supporting the transformation of the global fleet

“Based on our market forecast, we estimate that more than 1,700 tankers and 2,900 bulk carriers will need to be replaced in the coming 5 years,” explains Jing Yang Sunny Li, Ship Type Expert for tankers at DNV China. China is the most important country for bulk and tanker newbuild projects, he adds. “According to Clarksons, 66% of bulk carrier and 63% of oil tanker newbuild orders, measured in gross tonnage, are placed in China, while in 2023 close to 80% of the bulker orders were awarded to Chinese yards.”

The transformation of the global fleet in this age of change brings both challenges and opportunities to the shipping industry, the expert points out. “The emergence of new fuels, in particular LNG, methanol and ammonia, along with new efficiency-enhancing technologies and new rules and regulations have led to new levels of sophistication. This calls for closer cooperation among all stakeholders to ensure quality, improved efficiency and innovation. We also want DNV to be the trusted voice in China in tackling this global transformation.”

New shipyards in great need of experienced support

Eastern Asian shipyards are busier than ever. Even the established yards in China are finding it difficult to keep up with incoming tanker and bulker orders, says Li. “Current delivery dates for new orders start at the end of 2027 or the beginning of 2028. Therefore, we are seeing new shipyards entering the bulker and tanker newbuild market. This year they have taken many orders from Greek tanker owners. The question for DNV has been: how can we support our customers to assure quality, so the vessels delivered are up to the owners’ expectations?”

The Chinese shipbuilding industry has many players, and the logistics of providing the know-how they need can be complex. In line with its customer-centric approach, DNV decided to make access to DNV expertise much easier for all these stakeholders. “At the same time we never compromise on quality,” Li points out. “So we have to utilize our expertise to focus on where we foresee potential risk and manage it from the beginning. The key is to cover all steps of the process, from pre-contract services to newbuild class approval, including technical workshops.”

Supporting ambitious newbuild projects from the beginning

Recent ambitious tanker newbuild projects supported by Li and his team include shuttle tankers for Knutsen NYK Offshore Tankers being built at Zhoushan, and a high-standard shuttle tanker for North Sea Shipping at Dalian yard. Both vessel types are intended for operation in Brazilian waters and therefore need to be specified according to the Petrobras standard. The contract for the latter was signed in 2021, says Li, but DNV support to the yard began in 2017. DNV’s global experts organized workshops for the customer, and the ship was delivered in 2023. Furthermore, Xiangyu shipyard is building ten chemical tankers to DNV class; several very large crude carriers are on order at DSIC and NTS; and Stena is having several methanol-fuelled medium-range chemical tankers built at GSI yard. On the bulker front, numerous Ultramax and Kamsarmax orders were placed in 2023, while in 2024 a run for Newcastlemax and very large ore carriers (VLOCs) can be seen. Sophisticated dual-fuel VLOCs with wind-assisted propulsion systems ordered by Shangdong Shipping on charter to Vale marks one of the highlights, together with the unique VLOCs for Winning International Group that will transport bauxite and iron ore from the new mining project in Simandou, West Africa.

Note: The full DNV Maritime Impact article can be found here.

Photo credit: DNV
Published: 22 August 2024