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

Shipbuilding

New Bulk Carrier Design Puts Ecoships in the Lotus Position

Ecoships, the technical shipmanagement arm of Newport Shipping Group, has introduced a next generation bulk carrier design, developed to set the standard in ecologically

Two MCS Exhaust Gas Boilers to Tersan Shipyard

Parat Halvorsen AS has been awarded new boiler plant contracts for two freezer trawlers to be built at Tersan Shipyard located in Telova, Turkey. The boiler plants are for Tersan¹s newbuildings No.

ClassNK's Noboru Ueda Attends KOTC Delivery Ceremony

Mr. Noboru Ueda, Chairman and President of ClassNK attended the delivery ceremony for the M/T Al Yarmouk, constructed at Daewoo Shipbuilding & Marine Engineering Co.

Finance

Statoil and DNV GL to Drive Subsea Factory Interface Standardization

Statoil has entered into an agreement with DNV GL to establish an industrial cooperation to introduce an international industry standard for subsea process technology.

Halliburton to Settle US Gulf Spill Claims for $1.1b

Halliburton Co said it reached a $1.1 billion settlement for a majority of claims against the company for its role in the BP oil spill in the Gulf of Mexico in 2010.

Joe Barton: Lift Oil Export Ban

A senior U.S. Congressman from Texas has come out in full support of the United States lifting the 40-year old ban on crude oil exports, putting him at odds with

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Sonar Winch
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: 0.2381 sec (4 req/sec)