Maritime Trade and Transport - HWWI

tanker with a capacity of 150,000 m3 costs $150-180 mn, equivalent to a cost reduction of 40%
in the past decade. Economies of scale, growing competition among the shipyards, and improved
shipbuilding technology are likely to further cut construction costs for LNG tankers.
Spot trade: Up to the present, almost all tankers are part of special production projects. Spot
trade represents only 15% of the global LNG market, and only 12 tankers are available to be
booked at this time. Since gas production, liquefaction, ships, and import terminals are very
expensive, long-term contracts of over 20 years will continue to predominate in this business.
Spot sales and the sale of individual shipments will become more important, however. Especially
smaller ships are likely to be increasingly available. Contracts covering price and volume
are also becoming more flexible. Since about half of the long-term contracts only end begin -
ning in 2020, newly built vessels are likely to be obtainable to a greater extent for spot trade.
5.2.5 Shipyards and shipbuilding nations
The face of the shipbuilding industry has changed considerably in the past 50 years. Whereas
Europe initially controlled the market, today the heart of shipbuilding beats in Asia. South
Korea (35%), Japan (30%), and China (15%) presently build approximately 80% of all merchant
ships, specializing in various segments. The German shipbuilding industry, with a market
share of only 4%, holds fourth place. 42
History – Signposts to the future 43
Until the early 1960s, the European countries were dominant in shipbuilding, responsible for
two-thirds of all new ships on the world market. Despite the overpowering British competition,
which built almost half of all merchant ships until the mid-1950s, German shipyards were
internationally competitive. They had begun building in sections and introducing new production
methods at an early date and profited from relatively low material and labor costs.
In the 1950s, Japan began its ascent, needing shipbuilding for the reconstruction of its
industrial structure. Its competitive edge was based on more than low wages. Standardization
of the construction process, automation, and new management techniques made it possible
for Japanese shipyards to quickly become more productive than their European counterparts. 44
In addition, the trend toward the construction of ever larger ships was anticipated in the boom
phase that lasted from 1965 to 1975. The shipyards were designed generously from the outset,
which proved to be an advantage in comparison with the modernization measures that had to
be undertaken in the old shipbuilding nations. Increase in size led to an escalation in capital
requirements. State support, closely linked to modern shipbuilding, thus became more
important. The fact that, despite its high labor costs, Japan is able to maintain its position as
the second largest shipbuilder is due to constant boosts in productivity, investments in mo-
42 See Clarkson Research Services (2006).
43 Regarding this chapter, see especially Colton/Huntzinger (2002); First Marine International Limited (2003).
44 In the 1970s, the production at Japanese shipyards was double that of the European shipyards.
106 Berenberg Bank · HWWI: Strategy 2030 · No. 4