Chinese shipbuilders are facing pressure from disrupted supply chains with a shortage of raw materials threatening delays in delivering some orders, according to industry insiders.
Even basics like paint, an essential component of shipbuilding, are in short supply because some paint factories have suspended production due to their own logistics problems, according to an employee in a major shipbuilder's procurement department.
"This has a major impact on the entire painting process of our nearly 20 boat segments and even affected the launching and delivery of our vessels," said Mao Jian, Deputy Head of Procurement at New Times Shipbuilding.
Even when raw materials can be found, the shortage of cross-city and cross-provincial freight drivers have pushed up logistics costs significantly.
"Take paint for example. Because it is a dangerous item, the transport cost has risen more than for other materials. Normally, a truck for paint costs between 3,000 and 4,000 yuan (around 600 U.S. dollars) in Jiangsu. But now the price is 15,000 to 18,000 yuan (around 3000 dollars), up almost five to six times," said Mao.
Shipbuilders in the Yangtze River Delta region, one of China's most developed industrial areas, account for more than 75 percent of the total capacity of the national shipbuilding industry.
Local authorities have taken action to help ease logistics bottlenecks, which is beginning to have a positive impact.
"The government opened special channels for trucks transporting supplies to Jingjiang like containers from Shanghai, which has relieved our shortage of production supplies," said Mao.
Experts said new technology is also being considered to enable real-time adjustments to logistics management based on changing industry needs.
Source: CCTV
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