Shipbuilders to benefit from free trade zone

Shanghai's pilot free trade zone will boost imports and exports, stabilize economic growth, and benefit various industries including finance and shipping, expert said.

The State Council's latest measures in upgrading the shipbuilding industry between 2013 and 2015 have pointed the right direction for the industry, and it will ultimately lead to a global shipbuilding recovery, said Zhang Shengkun, president of Shanghai Society of Naval Architects and Marine Engineers.

Zhang said he is cautiously optimistic toward the shipbuilding industry because of the State Council measures as well as the opportunities Shanghai's free trade zone will bring about.

Chinese shipbuilders met with unprecedented challenges including falling demand, prices and oversupply.

Data from the Ministry of Industry and Information Technology showed only 20.6 million deadweight tonnage of orders were completed from January to June nationwide, down 36 percent year-on-year.

Shipbuilders' confirmed orders dropped 13.4 percent to 108.98 million in deadweight tonnage as of the end of June.