No Light at End of World Shipbuilders’ Tunnel

Press Release
Friday, November 30, 2012

Drewry Maritime Research’s ‘Annual World Shipbuilding Market Review & Forecast’ highlights bleak prospects for the world’s shipbuilders.


Shipbuilding production levels have remained at record high levels exceeding 50 million cgt for two consecutive years (2010 -2011), with 2012 forecasted to remain close to 2011 levels. However the orderbook that forms the contracted forward workload has diminished rapidly and tails-off to very low levels for 2014 and beyond.


Over-tonnaging and large operating inefficiencies mask the true levels of fleet under-utilisation and are hindering a recovery. With the orderbook dominated by bulk carriers and containerships, two of the worst hit markets in terms of over supply wreaking havoc with rates, it reflects the fact that for some time now ordering activity by shipowners has exceed the requirements of trade growth.  


To give a clear insight into the prospects for the shipbuilding industry Drewry’s Annual World Shipbuilding Market Review and Forecast report presents three scenarios covering the projected newbuilding requirement by sector and ship type over a fifteen year period, reflecting the uncertainty that surrounds the industry.


Only under the High Case scenario is there a requirement for further new ordering beyond the size of orderbook at the start of 2012. Whereas under the more realistic Base Case in virtually all fleet sectors the size of the orderbook at the start of 2012 more than exceeded the newbuilding requirement to 2016.


The immediate prospects for the shipbuilding industry are therefore bleak. Furthermore access to funding – either through retained reserves or debt is very limited for shipowners and in the circumstances it seems almost inevitable that new ordering levels will remain low for some time to come.


Simply the difference between forecast demand and capacity is too great to be bridged by contraction from isolated capacity closure, meaning shipyards will have to fight for survival by securing enough of the limited new ordering that is likely to take place in the next couple of years.


To order the full report click here: http://www.drewry.co.uk/publications/view_publication.php?id=396

 

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

Shipbuilding

Research Vessel Concept a first for Voith

The new fisheries research vessel of the Shanghai Ocean University will be a first for Voith in several respects.   It is the first fisheries research vessel

MTU Powers RSN Navy's Littoral Mission Vessel

MTU to power eight Republic of Singapore Navy’s new patrol vessels. Employees and guests, including senior representatives from the Republic of Singapore Navy (RSN) and Ministry of Defence,

ISS Inks Service Pact with Technip

Inchcape Shipping Services (ISS) and Techniphave signed a contract to provide marine agency services and logistics for the Rashid C project in the Middle East. Currently

Ship Repair & Conversion

Shipping Gloomiest Since 2009

The shipping industry is the most pessimistic in six years about its prospects as a fleet surplus persists, according to a survey by law firm Norton Rose Fulbright, says a report in Reuters.

South Korea Tops in Shipbuild Orders

South Korean shipbuilders, led by industry leader Hyundai Heavy Industries Co., have secured the largest amount of new orders in the first six months of the year to retain the top slot,

MSC Geneva Gets Fatter

A revolutionary new option to scrapping for younger panamax containerships deemed too small for a tradelane involves widening the vessel rather than adding length.

Ship Sales

Research Vessel Concept a first for Voith

The new fisheries research vessel of the Shanghai Ocean University will be a first for Voith in several respects.   It is the first fisheries research vessel

Shipping Gloomiest Since 2009

The shipping industry is the most pessimistic in six years about its prospects as a fleet surplus persists, according to a survey by law firm Norton Rose Fulbright, says a report in Reuters.

South Korea Tops in Shipbuild Orders

South Korean shipbuilders, led by industry leader Hyundai Heavy Industries Co., have secured the largest amount of new orders in the first six months of the year to retain the top slot,

Finance

Buoys in Disputed Waters Roil South China Sea Dispute

Buoys stretched "as far as eye could see" - Philippine sailor. The Philippine navy recently found a large steel marker bearing Chinese inscriptions and hundreds

Navis N4 TOS Open in Liverpool Terminal

Peel Ports, owners and operators of the Port of Liverpool, has achieved a major milestone in its multi-million investment program to transform the port into Europe’s

AkzoNobel’s Carbon Credits Methodology Wins Award

AkzoNobel’s landmark carbon credits methodology for the shipping industry has won the Best Offsetting Project award in the 2015 Voluntary Carbon Market Rankings.

News

White House: Iran Talks Deadline Could Slip

The White House said Tuesday's deadline for negotiators in Vienna to come to a final, firm agreement on Iran's nuclear program could slip. When asked if President

SUNY Maritime College to Host e-Navigation Underway 2015

The State University of New York Maritime College will host the e-Navigation Underway 2015 – North America conference from September 28 to 30 on its Throggs Neck, N.

Port of New Orleans Goes Green

Green Marine, a North American environmental certification program for the marine, port and terminal industry, officially recognized the Port of New Orleans recently as a certified Green Port.

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Electronics Ship Repair 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: 0.2108 sec (5 req/sec)