China Shipyards Slash Prices to Survive

Chinese shipyards offer to sell vessels at discounts of more than 20 percent to compete with Asian rivals

Reuters report that rock bottom freight rates, slowing economic growth and an oversupply of ships have forced maritime firms to cancel or delay hundreds of new orders, leaving yards especially in China with unwanted vessels for sale.

As many as half of China's 1,600 shipbuilding companies are expected to go bankrupt or be acquired by larger rivals in the next two to three years and pressure is growing to move inventory, according to senior Chinese industry executives.