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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Asia-N.Europe Box Rates Fall 8.1 pct

Freight rates for transporting containers from ports in Asia to Northern Europe fell 8.1 percent to $713 per 20-foot container (TEU) in the week ended on Friday,

Unipec: U.S. ANS Destined for Sinopec

Arbitrage opens after ANS discount widen on ample supplies. Unipec, the trading arm of top Asian refiner Sinopec, has bought two U.S. crude cargoes, including

G6 Updates Asia-North America West Coast Service

Two services will be merged into one until further notice / Reason is change in market demand / All other services remain unchanged. Members of the G6 Alliance

 
 
Maritime Contracts Maritime Security Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | 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: 0.0871 sec (11 req/sec)