November 30 news, China Shipping Department continued to rise, as of press release, China Shipping Technology rose more than 8%, Chinese ships, Jiuzhiyang, China Shipbuilding emergency rose.

On the news, Debon Securities Research reported that: the 20-year shipbuilding cycle started, and the three major ship types continued to grow: reviewing the history of shipbuilding development, it can be divided into six cycles in more than 100 years, with a weekly interval of about 20 years. The mismatch between supply and demand caused by macro demand is the main reason. Under the catalysis of factors such as the continuous tightening of downstream transport capacity stimulated by the epidemic, the industry is ushering in a recovery, and the 20-year shipbuilding cycle has been restarted. In the first three quarters of 2021, new orders received worldwide reached 9812 million DWT, + 170.2% compared with the same period last year, exceeding the average annual order acceptance level of 91.52 million deadweight tons over the past decade. Structurally, it is mainly due to the substantial increase in container orders.

In the future, with the high freight rates and aging update drive, bulk carriers and oil tankers are expected to continue to grow. In addition, shipping has also been incorporated into the EU carbon emissions trading system. The EEXI (existing ship Energy efficiency Index) and CII (carbon intensity Index rating) passed by IMO will come into effect in 2023. As of September 2021, about 30% of existing orders use alternative fuels, and carbon will be rigid in the medium and long term to stimulate replacement demand.