EU Blames South Korean Yards For Low Prices

Thursday, November 16, 2000
The European Union on Wednesday blamed low prices offered by South Korean shipyards for the depression in the world shipbuilding market and accused Korea of pricing ships at below cost. A report by the EU's executive Commission found the world shipbuilding market continued to face serious difficulties.

"Supply still outstrips demand and there are few indications that this situation may improve," the Commission said, adding that the depression in prices was "caused by low offer prices from South Korean yards."

Repeating charges it has leveled often in the past, the Commission said its detailed cost investigations "continue to indicate that Korean yards are still taking orders at prices which are not covering all costs".

South Korea is the biggest shipbuilder in the world. Its shipyards took more than 40 percent of all new orders in the first eight months of this year, compared with 25 percent for Japan, 16 percent for the EU plus Norway and 19 percent for the rest of the world, the Commission said.

Despite higher orders in the first eight months of this year due to favorable market conditions in liquid bulk shipping and to the development of very large container ships, ship prices had not recovered from the "massive drop" since 1997, it said.

There were however some signs of improvement compared with the low levels at the end of 1999, it said.

The report, due to be discussed by EU industry ministers on December 5, provides ammunition for European shipbuilders and some EU officials who have been strongly critical of Korean shipbuilding practices.

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Rederij Groen Takes Delivery of 7-Waves

Rederij Groen’s entire SRSV fleet built by Damen Maaskant Shipyards Stellendam. Dutch offshore services company Rederij Groen has taken delivery of the 7-Waves,

De Beers Orders Specialized Ship from Kleven

Kleven signed a contract with diamond company De Beers Marine Namibia, part of De Beers Group, on the building of a highly specialized vessel for deep water mineral exploration.

FMT Options for another Towboat from Eastern

Eastern Shipbuilding Group, Inc. announce that Florida Marine Transporters, Inc. of Mandeville, La. exercised another additional 90’x32’x10’ “Canal Class” Inland

Finance

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Repair
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2668 sec (4 req/sec)