Shipbuilders in Jiangsu and Zhejiang provinces have followed Shanghai-based shipyards in declaring force majeure on deliveries of newbuildings.

A Jiangsu shipyard official confirmed to TradeWinds that his company has warned shipowners that there may be a delay in the delivery of newbuildings due to a shortage of shipbuilding materials, lube oil and ship equipment.

The delays appear to be caused by the knock-on effect of a strict lockdown in Shanghai, which has created logistics havoc and disrupted supply chains to shipyards.

TradeWinds earlier reported how Shanghai shipyards were forced into lockdown.

“Unlike shipyards in Shanghai that are in lockdown, shipyards in Jiangsu and Zhejiang are still in operation but their production is affected by material shortages,” said a local shipbuilding source.

TradeWinds is told that problems in securing supplies of marine paint is posing a major challenge to shipyards as it is critical to the newbuilding process.

“Yards are urgently in need of marine paint, but paint suppliers are facing a logistical nightmare,” said the source.

China’s lockdown has restricted travel and trucking services leaving logistic companies unable to deliver the cargoes.

Sources said several of the marine paint companies have plants in Kunshan city — a manufacturing hub located near Shanghai, which is also under lockdown.

TradeWinds is told that paint manufacturers in northern China such as in Qingdao are also impacted by the lockdown in Shanghai as they cannot secure production materials.

Restricted travel

“The raw materials are imported into Shanghai and the warehouses are located there or in Nantong. But the restricted travel means the materials remain in the warehouse,” said a Chinese marine paint specialist.

Shipbuilding sources said ship-repair yards are also greatly affected by the short supply of marine paint and shipowners are in contact with the yards on the issue.

They added that some shipping companies are redirecting their vessels to shipyards in other countries for repairs and dry-docking.

The shortage of marine paint has caused some newbuilding projects that are due to start to be delayed.

Shipyards in Shanghai such as Hudong-Zhonghua Shipbuilding, Jiangnan Shipyard and Shanghai Waigaoqiao Shipbuilding that are located on Changxing Island were told to halt operations by Chinese authorities in mid-March after an outbreak.

Shipbuilding sources said a few thousand yard workers have been locked down in the shipyards.