China Revives Bankrupt Shipyard Under New Ownership
05.01.2026
China Revives Bankrupt Shipyard Under New Ownership
China’s shipbuilding sector continues to expand capacity by restarting assets shut down after the previous downturn, rather than building new facilities from scratch.
A recent example is Nanjing Dongze Shipyard on the Yangtze River, which has resumed operations following a court-ordered sale and a change of ownership. The yard, previously independent and focused on small cargo vessels, ceased operations in 2017 and accumulated around $50 million in debt by 2025, entering bankruptcy reorganization.
The asset was acquired by a subsidiary of China Merchants Shipbuilding Industry Group, which assumed $33 million in liabilities. In return, the buyer gained ready-made infrastructure:
- two slipways up to 50,000 dwt
- production facilities
- valuable riverfront access on the Yangtze
These assets complement the capacity of the nearby Jinling Shipyard.
Under its new brand, the shipyard has already launched its first newbuild — the chemical tanker SC Emerald.
The deal highlights China’s current industry logic: rapid and cost-effective restoration of existing capacity instead of greenfield construction. With China accounting for over 50% of global shipbuilding and maintaining a solid orderbook, this approach delivers a strong competitive edge.
China Merchants Shipbuilding Industry Group is part of the state-owned China Merchants Group and continues to strengthen China’s global shipbuilding position through consolidation and asset reactivation.
Merry Christmas and Happy New Year!
24.12.2025
Dear Partners,
Warmest wishes for the upcoming Christmas and New Year!
We wish you joyful family moments, warmth, and peace during the holiday season. May the New Year bring confidence, stability, and new professional achievements, and may our partnership continue to grow stronger and more successful.
Thank you for your trust and cooperation — we look forward to many great projects ahead.
MSC and Hapag-Lloyd Compete for Israeli Carrier Zim
17.12.2025
Two global shipping majors, MSC and Hapag-Lloyd, are competing for the potential acquisition of Israeli container carrier Zim. The possible transaction is complicated by regulatory, corporate and political factors in Israel, according to Trasporto Europa.
Zim’s board of directors has rejected an initial buyout proposal from an internal investor group and appointed investment bank Evercore to run a structured sale process and evaluate incoming bids. Company management stated that it will not comment on the process until it is completed or a concrete agreement is reached.
According to Israeli sources, MSC is considered the leading candidate. Key factors cited include the company’s private ownership structure, the absence of external shareholders, existing operational cooperation with Zim, and MSC’s strong financial position, which would allow it to execute a transaction of this scale.
Interest from Hapag-Lloyd, however, has sparked debate in Israel, where Zim is viewed as a strategic national asset. Concerns stem from Hapag-Lloyd’s shareholder structure, which includes Middle Eastern sovereign investors. This has prompted opposition from Zim’s workforce, who have publicly raised objections based on the presence of these investors.
A central element in any potential deal is the Israeli government’s “golden share,” introduced during Zim’s privatization in 2004. It grants the state veto rights over any sale exceeding 24% of the company’s shares and imposes additional requirements on corporate governance and fleet availability in emergency situations.
At the same time, Zim is facing internal corporate tensions. A group of shareholders holding around 8% of the company has proposed changes to the board of directors. As a result, the annual shareholders’ meeting has been postponed to 26 December 2025, adding another layer of uncertainty at a time when the future of one of the global container shipping market’s notable players is being decided.
Global Container Index: +7%
10.12.2025
The global index for container shipping rose by 7%, reaching $1,927 per 40-foot container.
According to market analysts:
- after three consecutive weeks of decline — during which spot rates hit their lowest level since January 2025 — the market finally turned upward;
- several carriers shifted away from the traditional biweekly adjustments and adopted weekly GRI increases;
- instead of announcing large single hikes that quickly erode, carriers now apply smaller, incremental increases to maintain upward pressure on spot rates.
Drewry notes that this strategy has been effective so far, and rates are expected to remain stable over the coming week.
The Suez Canal Factor.
The ongoing uncertainty around Suez continues to increase volatility on Asia–Europe trades.
A full restoration of transit flows would add significant capacity back into the market and apply downward pressure on rates — though the effect is likely to be gradual, considering possible port congestion.
SCFI Down: –5.5 Points.
The Shanghai Containerized Freight Index (SCFI) fell by 5.5 points, reaching 1397.
Key drivers behind the decline:
- the index reflects only China’s export market;
- demand has softened after the autumn peak;
- carriers are not withdrawing capacity, which leads to stagnating rates on the China–Europe and China–US routes and pushes the index lower.
Batu Ampar North Pier Moves to a Unified Operator Model
01.12.2025
Starting December 1, all operations at the North Pier of Batu Ampar Port (Batam, Indonesia) will be consolidated under a single operator. Management will be assumed by Batu Ampar Container Terminal (an ICTSI subsidiary) in partnership with Interport Mandiri Utama, with the involvement of Batam Terminal Petikemas, granting the group full port-operator rights and responsibilities.
According to ICTSI, unifying the operational structure will raise service standards, improve efficiency, and strengthen Batu Ampar Port’s position as a regional logistics hub. The North Pier is equipped with modern infrastructure, offering an annual capacity of 900,000 TEU, a 1,032-meter quay, 5 quay cranes, 12 RTGs, and 10 electric terminal tractors, with the fleet expected to expand to 25 units soon.
ICTSI notes that the transition to a single-operator model will help shorten vessel turnaround times and enhance overall service reliability.
International Container Terminal Services, Inc. (ICTSI) is a global port operator founded in 1988 in the Philippines. It is controlled by Filipino businessman Enrique K. Razon Jr. through the Razon Group.