Shipbuilding supply, demand to be balanced by 2020

Current overcapacity in the shipbuilding industry is likely to end by 2020 with a rebalance between supply and demand, attendees of the World Congress of Ocean in northeast China's coastal city of Dalian have predicted.

The global shipping market's overcapacity comes because demand has fallen sharply and the capacity built during the boom years is no longer being used sufficiently, explained Corrado Antonini, chairman of the world's largest cruise ship builder, Fincantieri of Italy.

However, the rebalancing act may not be an easy one. "In order to bring back the balance, we will need first, the recovery of the global economy; second, the reduction of excessive capacity which was built during the boom years," said Antonini at the congress, taking place between September 20 and 22 in Liaoning Province.

"This needs time, but I am confident that shipbuilding and shipping will be in balance again before the end of this decade. This requires common effort by all people involved," he added.

"We are meeting the shipping industry from all over the world including China next month in San Diego and we will extensively discuss what should be done in order to bring back the balance."

Participants in the the conference, which covers topics including maritime law, marine resources assessment and shipping economics, also expressed the importance they attach to the chinese market.

Sturla Henriksen, director general of the Norwegian Shipowners' Association, said, "For Norway, which is one of the world's largest maritime nations, China is very important as our long-standing maritime partner. It is important as a market and also because the Chinese economy is a key driver of the world economy.

"Even though Chinese growth may slow down, its business will still be very important because of the size of the country's economy. So we are optimistic about China's place in the world today and will continue to be so in the future."