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Crane collapse could delay vessel deliveries

Keith Wallis and Michelle Wiese Bockmann - Friday 30 May 2008

DRYDOCKS at China’s Hudong-Zhonghua Shipbuilding could be out of action for at least six months, possibly delaying delivery of up to 103 vessels on order at the Shanghai-based yard. 

The collapse of two 600-tonne gantry cranes, which killed three shipyard workers, was a tragegy that underlined uncertainity in future delivery schedules, said DNB Nor Bank today. 

Analyst Henrik With reported speculation of a six-month closure of drydocks, and the possible impact on the orderbook, which included container, bulk carriers, and LNG tonnage. 

He said there were 103 vessels contracted, including six, 8,600 teu container ships for Orient Overseas International, and a series of panamax bulk carriers and tankers for Italian-based Rizzo Bottiglieri. 

Cardiff Marine, Iolcos Hellenic and Irika Shipping are some of the Greek-based companies with panamax bulk carriers on order at the yard. 

More than one fifth of the orderbook includes panamax bulk carriers scheduled for delivery from 2008 until 2012. 

The dry bulk market, which faces a deluge of new tonnage from 2009, is actutely sensitive to news about bulk carrier delays. There are fears that over-ordering may see spot rates plummet amid a glut of bulk carriers coming into the market. 

Shipowners have said only delays or cancellations could prevent rates from falling from their historically high levels. 

An investigation meanwhile has been launched following the gantry crane collapse. 

The three workers that died were in the cabs of the two cranes which fell about 10m to the ground. 

Sources said columns on the cranes buckled and collapsed at about 0025 hours on today. Two security guards were injured, one critically, and both were taken to a local hospital. 

While the accident prompted concern that one of the dry docks at the yard could be out of action for up to six months, industry insiders have already suggested that the shipbuilder would try to spread work among its other facilities to mitigate delays. 

The Hudong-Zhonghua group has four shipbuilding facilities including Shanghai Edward Shipbuilding, at Pudong, Punan and Fuxing. 

They include a dry dock capable of building very large crude carriers, a 120,000 dwt floating dry dock and five shipbuilding berths for vessels up to 20,000 dwt, 70,000 dwt and 120,000 dwt. The shipbuilder has eight 100 tonnes capacity cranes working at its shipbuilding facilities. 

One source said: “The accident is potentially crippling for the shipbuilder. But until a proper assessment can be carried out and executives can review how much work can be carried out by other facilities it is difficult to comment on how much impact the accident will have on production.” 

Captain Doug Brown, general manager of China LNG Shipping (International), told Lloyd’s List that none of the five 147,000 cu m LNG carriers being built by Hudong-Zhonghua were affected by the accident. 

The Dapeng Sun has already been delivered, and the next vessel in the series, Dapeng Moon, is due for delivery by July.