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 August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

G E Shipping delivers “Jag Aakash” to Buyers

The Great Eastern Shipping Company Ltd. (G E Shipping) delivered the new building Kamsarmax Dry Bulk Carrier “Jag Aakash” (81,600 dwt) to the buyers.  The vessel

New Energy-saving Windshield on MOL MARVEL

Mitsui O.S.K. Lines, Ltd. today announced that it has started demonstration tests of a new windshield for containerships, which has the potential to reduce wind resistance,

Taiwan Eyes Budget for New Submarines

Taiwan’s defense ministry seeks financing to expand the country’s submarine fleet, reports Reuters quoting local media reports.   The government has allocated $92.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Repair Winch
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: 0.7859 sec (1 req/sec)