The shipbuilding industry has a fairly long production cycle, leading to the delayed impact of the global financial crisis. As a result, each indicator for the entire industry in the first half could still show relatively fast growth. "We received orders in 2008 for ships to be delivered in 2012. The output value for this year will be related to orders previously signed. Pressure will build over time," said Qian.

According to statistics from the China Association of the National Shipbuilding Industry (CANSI), in the first half of 2009, each economic indicator for the shipbuilding industry maintained growth, but the growth rate considerably dropped. Between January and May, the total amount of ships built in China increased 61 percent year-on-year to reach 12.16 million deadweight tonnages (DWTs). Export delivery value totaled 96.8 billion yuan, an increase of 25.8 percent year-on-year. This growth rate dropped by 38.9 percentage points compared to the same period last year. The export delivery value growth rate for both the shipbuilding industry and shipbuilding businesses was slower than the total industrial output growth rate, reflecting an increasingly grim situation for export.

Experts from CANSI estimated that, in light of the current operating situation of China's shipbuilding enterprises, this year's key economic indicators for the industry could still maintain certain growth, and expect the total output to exceed 40 million DWTs, keeping a double-digit growth.

Despite surges in both output and operating revenue, cumulative profits by enterprises above a certain scale in the industry saw a 2.7 percent year-on-year decline. Compared to the end of last year, the risk and pressure for the shipbuilding industry are mounting.

Against the backdrop of a tumbling number of new orders in the market, by nearly 98 percent year-on-year, the number of orders in the hands of China's shipbuilding enterprises has dropped for eight consecutive months. The difficulty of smooth ship delivery has been gradually rising due to the long-term reduction in demand for new orders in the shipbuilding market, the rapid price drop of new ships, an increasing number of contract negotiations between owners and enterprises that involve price reductions, the adjustment of ship types, the postponement of delivery and payment, or a change in the method of payment.

While shipbuilding enterprises feel the growing difficulties over delivery, more ship owners are asking to cancel orders. According to incomplete statistics, between October 2008 and the end of May 2009, the cumulative number of canceled ship orders stood at 152 units. Methods of ensuring the safety and validity of existing orders have become another tough issue facing shipbuilding enterprises.

"The recovery of the ship industry will happen after macroeconomic recovery," said Qian, adding, "If the global economic situation worsens, the impact on the shipbuilding industry will be even greater."