TradeWinds Web TV covered the conference and interviewed a selection of delegates for their opinions. Please click to view.

TradeWinds web TV Coverage of Shipping China Energy 2007

Delegates Impressions of Shipping China 2007

Chih-Chien Hsu, Courage Marine

Jan Fransen, Green Award Foundation

Herman Billung, Golden Ocean

Philip Clausius, First Ship Lease

Nicolas Pappadakis, Intercargo

Tor Svensen, DNV and Alan Gavin, Lloyd’s Register

Peter Malpas, Braemar Seascope

Espen Lund, DnB NOR Bank

Close to 300 shipping players gathered in Shanghai recently for the Shipping China Energy 2007 conference. The two-day event is the fourth conference jointly organised in China by TradeWinds and Mare Forum.

Zhu Xinqiang, assistant president of China Exim Bank, says the forum on energy in China is timely as the country's industrialisation and urbanisation has brought a huge demand for energy consumption.

Peter Malpas of Braemar Seascope says 70% of China's primary energy comes from coal and that the nation's status as a net exporter of coal is changing to a net importer. He predicts China will become a net importer of coal by 2010, importing 12 million tonnes. This import volume will have an impact on the industry as a whole, driving shipping requirements to increase across all sectors.

On the domestic front, Malpas says coastal coal shipments are in the region of 300 million tonnes per annum, although the real volume is estimated, including unreported shipments, to be in the region of 550 million to 600 million tonnes. All the coastal shipping is believed to be carried out only by domestic players.

Coal maybe China's major energy source but its reliance on oil is also increasing. According to Meng Qinglin of Dalian Ocean Shipping Co (Cosco Dalian), China is the second-largest energy producer and consumer. It imported 145.18 million tonnes of crude oil last year, of which 90% was transported by sea. In order for China to have a reliable oil supply, Meng says it needs to build up its large tanker fleet.

Paul Moeyaert of Euronav calculates that based on an estimated 6.1% increase of oil demand by China in 2007, the nation would need a net growth of 29 VLCCs to transport the cargoes. He suggests that ultra large crude carriers (ULCCs) may be the ship type that China should consider in transporting cargoes as a ULCC is able to carry 3.2 million barrels of oil as opposed to two million barrels by a VLCC. However, he notes that the current port infrastructure in China is restricting the use of ULCCs but once that matter is resolved, there will be advantages in using the ultra-large tankers.

One of the hot topics discussed was the financing of Chinese-flag ships, the opportunity for foreign banks in doing so and the legal issues surrounding it.

Espen Lund of DnB NOR says China will need lots of fleet replacement as there are 2,900 Chinese-flag ships with an average age of 25 years. He adds that there are opportunities for foreign banks to finance Chinese-flag ships and some are preparing to enter the market. He reckons that currently there are one or two foreign banks accepting these vessels and in five years' time, the number may increase to 20.

On the shipbuilding front, Liang Xiaolei of Sino Pacific Heavy Industries shared with the shipping delegates that in preparation for the shipbuilding downturn, the group has taken three steps that will aid it in overcoming the lull period a good yard-management team, an increase in productivity and the ability to build high-value-added vessels.

The conference may have focused on China's energy shipping but it had a global atmosphere with delegates coming from around 20 countries as far away as South Africa, Egypt, China, Denmark, Norway and the US. The forum was not only an insight into shipping opportunities in China but also a platform for delegates to trade name cards and talk business at the coffee breaks and evening receptions.

By Irene Ang, Singapore

published: 04 May 2007

Shipping China Energy is organised jointly with Mare Forum. The next Shipping China will be held April 24th - 25th 2008 in Shanghai.

"COSCO Group and I are pleased to support Shipping China Energy 2007 and look forward to attending this important conference."

Capt Wei Jiafu, Group President and CEO, Cosco Group

“Shipping China Energy 2007 is a very important event to attend for those involved in the Shipping and Energy sectors. Join us and the Chinese Shipping Industry to discuss issues of common concerns, seek common interests, cope with common challenges and achieve common goals.”

Mr. Li Kejun, Chairman and President, China Classification Society