Chinese shipyards are gaining favor among Greek shippers thanks to lending provided by banks in China but their peers at Korea remains top choice for Greek interests due to the technological edge they offer.
Chinese shipyards have taken on deals to build 56 vessels for Greek shippers, worth $2.3 billion, reflecting the strong ties between the two sides. Aggressive marketing from the Chinese involving price discounts of between 10-15 percent have increased the order book from Greek shippers.
About half of the new orders consist of cargo ships as the Chinese have specialized in this type of vessel. Based on data from ship valuers VesselsValue, Greek shippers have ordered 33 cargo vessels, worth $1.4 billion. When completed, they will add about 3.2 million dwt to the capacity of the Greek shipping fleet.
A significant number of container ships are also in the pipeline as Greek shippers expect to take delivery of 13 new vessels with a capacity of 80,250 containers, worth $712 million. When it comes to tankers, 10 ships have been ordered with a capacity of 1.3 million dwt worth $535 million.
Potential for further growth between the two sides is considerable as the Chinese shipyards hold a market share of 29 percent of new ships ordered by Greek interests.
VesselValue data shows that South Korean shipyards are most favored by Greek shippers, holding 60 percent (or 118 vessels) of the total order book that reaches 196 ships. In Japan, which was a leader in the field some twenty years ago, 21 vessels are being built for the Greeks or just 11 percent of the total.
South Korean dockyards are the preferred choice when it comes to liquified natural gas (LNG) carriers and tankers. Data shows that Greeks have ordered from the Koreans, 55 LNG carriers, worth 10.3 billion euros, and 58 tankers, valued at $3.4 billion.