RA BRS 2003 GB >pdf

10
%
100
Shipping and Shipbuilding Markets 2003
90
80
70
60
50
40
30
20
10
0
Due to a relatively light workload they were in a
position to take orders for an important number of
large containerships, Capesize and Panamax bulk
carriers.
Europe
New orders are in sharp decline and market share
of European shipyards is slowly being whittled
down, going from over 11 % at the end of 2001 to
8.3 % at the end of 2002.
The striking point lays more in the decline in the
orderbook of European shipyards than that of their
market share. In practice, the former fluctuated
within a range between 8 and 9 million tons right
throughout the 90’s. This year, it went from 8.5 million
tons to 6.2 million tons.
This highlights the huge difficulties of European
shipbuilders when confronted with a fall in prices.
These same yards were able to notch up at the end
of 2000 orders up to 3 years in circumstances much
more favourable than in 2002. They then combined
three advantages:
◆ firmer levels of prices (a better economic climate
and a stronger demand),
◆ subsidies up to 9 % of the sales price,
◆ a more favourable dollar/euro exchange rate in a
market where ship’s values are normally expressed
in dollars.
Overall conditions are quite different today.
Shipbuilding countries market shares evolution for containerships
Japan
Korea
Germany
Others
Sep 98 Dec 98 Mar 99 Jun 99 Sep 99 Dec 99 Mar 00 Jun 00 Sep 00 Dec 00 Mar 01 Jun 01 Sep 01
Dec 01 Mar 02 Jun 02 Sep 02 Dec 02
Demand for specialised ships, which comprises a large
part of European production (cruise ships, ro-ros, ferries,
chemical carriers, LNG carriers) has remained
weak or has been displaced towards Far Eastern yards.
Thus, the major chemical tankers operators like
Stolt-Nielsen or Jo Tankers who ordered series of
ships built in Europe in the 90’s, have turned
towards Japanese shipyards. One should note
however that European yards capable of building
ships of this type are becoming more and more
scarce. A large part of these orders for chemical
carriers fitted with stainless steel tanks have been
placed by Japanese owners, either on long-term
employment with these European operators, or for
domestic account. These chemical carriers have
fewer tanks and segregations and generally speaking
are less sophisticated than the ships ordered
in the 90’s, built by European yards. But the competition
is so intense today that operators are obliged
to reconsider their technical preferences.
Japanese shipyards have been pursuing for a number
of years a path of standardising ships, better
suited for the industrialisation and thus giving a better
control over costs.
Cruise ship operators who made massive investments
in 1999 and 2000 are waiting in the wings.
Only three orders were placed in 2002 after only
one in 2001.
European shipyards, with the exception of one,
have not been able to get orders for LNG carriers
despite a steady demand.