Shipbuilding Industry Makes a Soft Landing

BIMCO
Wednesday, May 15, 2013

The  landing has been cushioned by a shift in orders from mainstream-type merchant ships towards specialised offshore segment support vessels.

According to the BIMCO analysis the shipyard industry seemed to head straight for the output-abyss just 15 months ago. Today the transition from recent years' record high shipyard output to a more sustainable level of output appears to soft-land with global shipyard output clearly slowing down. This BIMCO analysis compares data from December 2011 with data from March 2013, representing a remarkable turn for the shipyard industry.



An integrated part of this soft landing is the evidence of the shifting focus on shipping segments away from the mainstream merchant vessels like dry bulk, tanker and container ships towards the work vessels that primarily serve the offshore oil industry.



Over the past years more and more “ship finance” has ended up being in the support of the offshore industry. This is evident from the fact that the offshore orderbook is the only one which is higher today as compared to 15 months ago. The offshore orderbook includes: FPSO/FSO, drilling ships, offshore support vessels, AHTS, platform supply vessels etc.

The BIMCO research report adds that moreover, there is also a clear trend in sizing up and focus on larger ship types for the new orders placed in the offshore segment. The fact that numbers are “only” up by 20% whereas the capacity, as measured in terms of Compensated Gross Tonnage (CGT), is up by 42% illustrates most of all the large appetite for sophisticated tonnage like FPSO/FSO (+83%) and drilling ships (+75%).The combined force of FPSO/FSO and drilling ships is representing 72% of the offshore orderbook today, up from 51% in December 2011.

Chief Shipping Analyst at BIMCO, Peter Sand, says: “While the shipyard overcapacity remains considerable, the excess capacity is being redirected towards other segments, [i.e.] the offshore oil industry.  In the perspective up to 2020, every indication points in the direction of a soft landing for the yards in terms of how they fill the excess newbuilding capacity. The shipping industry, on the other hand, will continue to be impacted by the overhang of tonnage for at least a few more years.”

Source: BIMCO

 

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

Shipbuilding

Saab Completes Acquisition of TKMS (Kockums)

Defence and security company Saab's acquisition of the Swedish shipyard Thyssen Krupp Marine Systems (TKMS, formerly Kockums) has now been completed. The acquisition

GDI Awards N-KOM US$110-M Contracts

Gulf Drilling International (GDI) Limited, a subsidiary of Gulf International Services (GIS), the largest oilfield service company in Qatar, has awarded two contracts

Navios Announces VLCC Delivery

Navios Maritime Acquisition Corporation, an owner and operator of tanker vessels, has announced that the Nave Electron, a 2002-built VLCC of 305,178 dwt, was delivered

Finance

Seadrill Bondholders: Majority Accept Conversion Offer

Seadrill Limited says that holders of approximately US$547 million of Seadrill's convertible bonds due 2017 (representing approx. 84.1% of the total outstanding

General Dynamics Reports 2Q 2014 Earnings

General Dynamics today reported 2014 second-quarter earnings from continuing operations of $646 million, or $1.88 per share on a diluted basis, compared to second-quarter

Trading Dutch Well Placed to Pursue Russia Sanctions

The seafaring Netherlands prides itself on being a trading nation, reluctant to let politics get in the way of a good deal. But since the downing, allegedly

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Offshore Oil 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: 0.2157 sec (5 req/sec)