SUMEC Group Completes the Delivery of the 13th Outbound Vessel in 2016

2016-12-07 15:38:14 Print To share:

On November 5, 2016, the deck module carrier “CY INTEROCEAN I”, weighing 15000 tons, slowly sailed up towards the East China Sea, which marked the completion of the formal delivery of the 13th outbound vessel by SUMEC Marine Co., Ltd. in this year, achieving over 90% of the yearly completion and vessel delivery plan. It is not easy to make such achievement under the industrial background of a year-on-year decline of 11.5% in the amount of outbound vessel completed throughout the country, common difficulty in ship delivery by the shipyard, tardiness in accepting the ship by the shipowner and high rate of ship abandonment. 


Since the subprime crisis broke out, decelerated growth of global trade has led to sharp reduction of shipping demand and the situation of oversupply in transport capacity has continued to this day. Recently, pulled by the soaring price of global bulk commodity, BDI (Baltic Dry Index) has increased by 14% compared with the same period last year; container transportation enterprise prosperity index has returned to the prosperity interval for the first time since the 4th quarter of 2014; the dry bulk transportation enterprise prosperity index has risen to the weak depression interval, growing substantially by 20.39% compared with the last quarter. Nevertheless, whether the shipping industry can bounce off the bottom and whether the market demand of ship can pick up remain to be seen due to lack of long-term support for market fundamentals. It may indicate the continuously harsh situation in shipping industry.

Facing the adverse operation environment lasting for near 8 years and sweeping the industry; facing the tough situation of surrounding shipbuilding enterprise even struggling to maintain normal operation with liquidity crunch; facing the high-risk trend of the shipowner’s reluctance to take the ship and frequent action of ship abandonment, SUMEC Group has proactively taken effective measurements to tackle the industrial risk with whole might.

Carry out the projects at hand strictly: 

◆ To optimize the internal project control process with logistics and cash flow as the core and to strengthen project supervision.

◆ To initiatively unite all parties concerned including the shipyard, government and financial institution, to keep close collaboration and communication in terms of difficulties arising from the shipbuilding. To communicate with the shipowner and custodian actively, to implement the continuous fulfillment agreement of pending order and guarantee the order to be fulfilled according to the contract.

◆ To adopt new process and new equipment at a low cost to reduce the shipbuilding fees with guaranteeing the overall ship quality from the standpoint of the shipowner.

Promote the optimization of products structure and transformation of business mode:

◆ To grasp the opportunity to enter the high-end segment market including working ship and gas tanker.

◆ To conduct self-built and rental business by taking advantage of periodic variation of the shipbuilding market and shipping market, to exploit new possibility in business at the same time of decreasing the risk exposure.

As is known to us all, the shipbuilding industry is confronted with severe challenge with strong periodicity. The successful delivery of 13 ships by SUMEC Group in 2016 has demonstrated the team capacity and strength as well as our strong sense of responsibility towards the shipowner and partners. We believe that the arduous efforts made against difficulties are bond to lay a solid foundation for the future of SUMEC Marine Co., Ltd. and we are to make due contribution to the development of shipping industry in Jiangsu Province. In the future, SUMEC Group will further cultivate and develop the new core competence system integrating the ship design, construction, supervision and business financing, strive to promote the transformation and upgrading of shipping business and conceive new chapter for the shipping development. 

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