Financial Crisis and Shipbuilding

Tuesday, October 07, 2008

Anyone who was in Hamburg late last month the the SMM 2008 exhibition would contend that the shipbuilding market is stronger than ever, as the expo drew a record of nearly 2,000 exhibitors and 50,000 attendees. But the continuing global credit crisis, which apparently is now extended far beyond the subprime mortgage mess in the , could eventually what has been a historic shipbuilding run.

The shipbuilders’ problems stem from those of both the shipping and banking, as a slowdown in trading is compounded by the inability or reluctance of banks to extend financing for orders. The Baltic Dry Index (BDI), the global benchmark for the cost of shipping commodities, has slumped to a quarter of its level four months ago.

Asian shipyards filled their order books until 2011 on the back of a decade-long Asian economic boom. That still provides a cushion for larger and more efficient yards, but some Chinese fledgling companies reportedly now scramble to put refund guarantees in place to secure contracts.

Shares in Korean shipbuilders plunged on Monday, led by Daewoo Shipbuilding & Marine Engineering amid concern the downturn could force Korea Development Bank and Korea Asset Management to cancel the sale of their 50.4 per cent stake in Daewoo Shipbuilding.

While it can be difficult to find good news, some did emerge on Tuesday as global steelmakers warned that rising raw material prices, excess capacity and environmental concerns could conspire to drive down the cost of steel in the coming months, according to a WSJ report.

(Source: Financial Times, Wall Street Journal and Staff Report)

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

Finance

Asia VLCC Rates Could Could Climb Even More

Owners see rates climb by nearly $22,000 per day; Rates could peak as more tonnage comes free. Rates for very large crude carriers (VLCCs) on key Asian routes

New Players in Singapore Markets in OW's Absence

The downfall of a leading marine fuel supplier that prompted sellers to tighten credit terms in Singapore is skewing the post-OW Bunker jostle for market share

Asian Airlines Pause Before Hedging on Fuel

Oil fell to four-year low of $72 on Thursday; Airlines hope the price will slip below $70 a barrel. Airlines in Asia-Pacific are holding off from hedging their

 
 
Maritime Careers / Shipboard Positions Navigation Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair 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: 0.1086 sec (9 req/sec)