DryShips chief operating officer Pankaj Khanna pointed out that Japan might quit shipbuilding industry in ten years. On the other hand, Chinese shipbuilding industry would occupy Japanese territory by advantage of cheap labor cost.

China has defended its position in global shipbuilding market and it becomes more and more important. Analysts said China, South Korea and Japan took 91% of global shipbuilding share.

"As Chinese shipbuilding industry is becoming stronger, Japan will retreat finally. I'm afraid Japanese shipyards will have to be closed in coming five to ten years," said Pankaj Khanna in New York recently.

Japan used to be the world?s largest shipbuilding country. However, it was left behind by Korea and China. Japan's stake in Asian shipbuilding market was decreased from 50% in 1999, to 21% now. Mitsubishi, MES and Kawasaki were all Japanese shipbuilding giants.

CFO Alan Ginsberg of Eagle Bulk Shipping also said they ordered 30 Supramax bulk carriers. Japan took only two of them while China bagged the remaining.

Chairman Takao Motoyama from the Shipbuilders' Association of Japan previously said the orders would dive by 50% this year. The shipowners had to adopt delivery delays or cancellation due to global economy recession.

Source: asiasis