sea europe shipbuilding market onitoring report no 45 … · 2018-10-22 · sea europe shipbuilding...
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SEA EUROPE SHIPBUILDING MARKET MONITORING
REPORT NO 45 (OCTOBER 2018) 1ST
HALF 2018
SUMMARY: • The uptick in global newbuilding contracting, which started in 2017 after the 30-year record low levels of 2016,
continued over the 1st half of 2018.
• Compared to 1H 2017, new orders volume almost doubled globally but remains still relatively limited in historical
terms.
• While new build contracting is improving, this has not reached a high enough level to feed the global production
capacity. Output continues to exceed new orders, resulting in a decrease in the global orderbook.
• Despite painful efforts of reducing shipbuilding capacity, the oversupply situation is expected to remain.
Consequently, the global competitive environment is getting increasingly tougher.
• Bail-out, protectionist measures and market-distorting interventions continue to proliferate in third countries.
• Some publicly reported ship prices provided seem to indicate offer price well below cost of production, which
causes major damages to the recovery of markets to sustainable levels.
• In South Korea state owned banks continue to finance loss-making projects, while the Government started
implementing its announcement to order 200 large cargo vessels (despite overcapacity in the market).
• As a result, in 1H 2018 South Korea regained its first place amongst top shipbuilder nations in CGT and order value
terms, while China maintained its first ranking in number of units ordered succeeding in winning several European
ferry orders through aggressive low pricing strategies.
• The Japanese government is considering filing a complaint with the World Trade Organization against South Korea,
alleging it unfairly subsidized shipbuilders and caused excessive price competition in the global market.
• Thanks to healthy demand and sustained contracting in specialised niche markets, the European shipbuilding
orderbook continues growing (for the sixth consecutive year), reaching at the end of June 11,6 M Compensated
Gross Tons (CGT). A total of 87 vessels of 1.6 M CGT have been reported ordered at European yards in 1H 2018
while the combined estimated investment value of new orders over the said period amounted to $6.1bn (22% of
global investment).
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INDEX
Contents INDEX .................................................................................................................................................. 1
SHIPBUILDING STATISTICS ......................................................................................................................... 3
Figure 1 – Summary of activity in World Shipyards ....................................................................... 3
Figure 2 – Summary of activity in Chinese shipyards .................................................................... 4
Figure 3 – Summary of activity in South Korean shipyards ............................................................ 5
Figure 4 – Summary of activity of Japanese shipyards .................................................................. 6
Figure 5 – Summary of activity of EU28+ Norway shipyards .......................................................... 7
Figure 6 – New Orders by Area and Ship Type .............................................................................. 8
Figure 7 – Completions by Main Shipbuilding Areas and Ship Types.............................................. 9
Figure 8 – World Orderbook by Area ......................................................................................... 10
Figure 9 – Value of deliveries by main Shipbuilding Areas .......................................................... 11
Figure 10 – Value of the New Orders by main Shipbuilding Areas ............................................... 11
Figure 11 - Value of World Commercial Orderbook by main Shipbuilding Areas .......................... 11
Figure 12 - Evolution of Global Investment in Newbuilding Activity ............................................ 12
Figure 13 – Exchange Rates pre-Lehman Index ........................................................................... 12
Figure 14 – Monthly Newbuilding Price Index ............................................................................ 13
Figure 15 – Ship Scrapping ......................................................................................................... 13
Figure 16 – Materials Price ........................................................................................................ 14
Table 1 - Orderbook by Ship Types – 30.6.2018 .......................................................................... 15
Table 2 - Orderbook by Country – 30.06.2018 ............................................................................ 16
Table 3 - New Orders by Ship types: January-June 2018 ............................................................. 17
Table 4 - New Orders by Country: JANUARY- JUNE 2018 ............................................................. 18
Table 5 - Completions by Country: January- June 2018 ............................................................... 19
Table 6 - Completions by Shiptypes: January- June 2018 ............................................................ 20
NEWS - MARKET & POLICY DEVELOPMENTS ............................................................................................... 21
Japan ........................................................................................................................................ 21
South Korea .............................................................................................................................. 21
China ........................................................................................................................................ 23
Europe ...................................................................................................................................... 24
Equipment, Fuels and Materials ................................................................................................ 26
Policy and Regulation ................................................................................................................ 27
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Innovation ................................................................................................................................ 27
Global....................................................................................................................................... 28
Naval ........................................................................................................................................ 29
SEA Europe news ...................................................................................................................... 29
Glossary and Abbreviations: ............................................................................................................. 31
Notes ............................................................................................................................................... 33
For the purpose of this report, SEA Europe processes data from professional data service provides. Please pay attention to the indicated data source. Often SEA Europe Member Associations note considerable difference in comparison to national statistics, which may relate to the specific methodology applied. SEA Europe reports all external data as received from the author without any modifications. The data reported at national level e.g. by national statistical offices will be reflected in our Annual Report.
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SHIPBUILDING STATISTICS Figure 1 – Summary of activity in World Shipyards
Data Source: IHS Fairplay
Compared to 1H 2017, new orders volume in CGT has almost doubled during the first six months of 2018 climbing to a total of
13.2M CGT (616 units). But it remains still relatively limited in historical terms. In 1H 2018 shipyards delivered 1,163 vessels of a
combined 18m CGT. The number of deliveries again surpassed the order intake by a wide margin, continuing the downward trend
of the global orderbook since the peak experienced in 2008 to just 40% of that year’s level (reaching the lowest level since 2003).
Data source: IHS Fairplay
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Figure 2 – Summary of activity in Chinese shipyards
Data source: IHS Fairplay
Chinese Shipyards’ newbuilding orders intake doubled in 1H 2018 compared to the same period in 2017 reaching 3.7 M CGT (175
units) at the end of June. With respect to ship type, bulk carriers, oil tankers and containerships still dominate as the key export
products at Chinese shipyards. Completions slightly decreased reaching 6.4 M CGT (367 units) while the orderbook decreased
to 28.6 M CGT (1706 units) at the end of June 2018.
Data source: IHS Fairplay
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Figure 3 – Summary of activity in South Korean shipyards
Data source: IHS Fairplay
Since the dramatic, record low levels of 2016, ordering levels at South Korean yards increased significantly reaching at the end of
1H 2018 a total of 5 M CGT (122 units), mainly driven by a recovery in some newbuilding market segments (tankers, LNG carriers)
and massive state support measures. In 1H 2018, the volume of new orders surpassed the level of completions and as a result the
orderbook increased to a reported volume of 18.6 M CGT (450 units) at the end of June 2018.
Data source: IHS Fairplay
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Figure 4 – Summary of activity of Japanese shipyards
Data source IHS Fairplay
In 1H 2018 Japanese shipyards won a reported 2.3 M CGT (139 units), inverting the downward trend started in 2015, and delivered
a total of 4.2 M CGT (245 units). The orderbook continued however to decrease reaching 15.45 M CGT at the end of June 2018.
Data source IHS Fairplay
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Figure 5 – Summary of activity of EU28+ Norway shipyards
Data source: IHS Fairplay
The European orderbook continues growing since 2012 reaching at the end of June 2018 an estimated 11.6 M CGT (510
units). A total of 87 vessels of 1.6 M CGT have been reported ordered at European yards in1H 2018. Europan yards continue
to harvest the benefits of their specialisation and successful focus on high tech niche markets, with a few benefiting from the
extraordinary cruise ordering boom. While some yards are gradually trying to enter the small/expediton cruise segment in
a bid to diverisfy their business, others continue to struggle due to persistently weak (albeit slightly improved) ordering levels
in other markets, e.g. offshore.
Data source: IHS Fairplay
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Figure 6 – New Orders by Area and Ship Type
Data source: IHS Fairplay
In 1H 2018 the global new order intake volume doubled compared to 2017 mainly driven by strong recovery in some markets
(crude tanker and bulk carriers) but remains at historically low level. Contracting in the containership and offshore segments
remained very weak. In the first half of the year, South Korea regained its top position (ahead of China). In terms of global
order intake, tankers accounted for 2.9 M CGT (21.8%), Bulk Carriers 2.4 M CGT (18.1%), containers 2.4 M CGT, while
Passenger ships and ONCCV accounted together for 2.5 M CGT (19%).
Data source: IHS Fairplay
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Figure 7 – Completions by Main Shipbuilding Areas and Ship Types
Data source: IHS Fairplay
Global deliveries declined in 1H 2018 compared to the same period of last year. China led with 6.4 M CGT, followed by
South Korean Shipyards (4.3 M CGT) and Japan (4.2 M CGT). In absolute terms China delivered 367 units, followed by Japan
(245 units) and South Korea (109 units). European shipyards delivered 146 vessels and a total of 1.4 M CGT. Tankers
constituted 21.4% of the completions in CGT terms, followed by bulk carriers (18.5%), containerships and gas carriers (17%),
ONCC vessels (9.2%) and Passenger ships (6.6%).
Data source: IHS Fairplay
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Figure 8 – World Orderbook by Area
Data source: IHS Fairplay
In CGT terms, at the end of June 2018 China led the orderbook (28.6 M CGT) followed by Korea (18.5 M CGT), Japan (15.4
M CGT) and EU 28+Norway (11.6 M CGT). Bulk carriers led the orderbook (21.7%), followed by Tankers (19.9%),
Containers (14%), Passengers ships and Ferries (14%), Gas tankers (12.7%) and ONCCV and offshore (11.5 %).
Data source: IHS Fairplay
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Figure 9 – Value of deliveries by main Shipbuilding Areas
Data Source: Clarkson
In 1H 2018, Global shipyard output in value terms accounted for 38.5 billion dollars. Only European shipyards have a higher
new orders value than deliveries. ‘Europe’ includes also Norway, Turkey and Russia.
Figure 10 – Value of the New Orders by main Shipbuilding Areas 1H 2018 Value of new orders in bn $
Data Source: Clarkson
Global newbuilding investment reached an estimated total of $28.2bn in the first half of 2018, representing a 14% year-on-year decline on
an annualised basis. Contracts placed at European yards have a combined estimated investment value of $6.1bn, accounting for 21% of global
investment. ‘Europe’ includes also Norway, Turkey and Russia.
Figure 11 -Value of World Commercial Orderbook by main Shipbuilding Areas
Data source: Clarkson (‘Europe’ includes also Norway, Turkey and Russia.)
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Figure 12 - Evolution of Global Investment in Newbuilding Activity
Data source: Clarkson
In 1H 2018, Global newbuilding investment reached an estimated total of $28.2bn, representing a 14% year-on-year decline
on an annualised basis. The gas carrier sector accounted for 26% of total estimated investment in June, the second largest
share of any vessel type, with an estimated $0.6bn invested in five units. This brought total year to date estimated investment
to $4.9bn, the vast majority of which (84%) was invested in LNG carriers. An estimated $3.5bn has been invested in the
bulker sector, representing a 33% year-on-year decline on an annualised basis. After two consecutive years of incresed
investment levels, in 1H 2018 the cruise sector attracted a reported investment value of 4.7$bn (down by 53% compared to
1H 2017) accounting for 16.7% of total investment.
Figure 13 – Exchange Rates pre-Lehman Index
Data Source: X-Rates
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Figure 14 – Monthly Newbuilding Price Index
Data Source: Clarkson Clarkson’s ship prices index shows the evolution of price development. Due to the collapse in new orders for cargo vessels,
shipyards have been competing to secure orders to very cheap prices. The Clarkson’s Newbuilding Price Index stood at 128
points at the end of June 2017, up 4% on its end 2017 level, showing that newbuild prices have increased but marginally,
remaining at very low levels.
Figure 15 – Ship Scrapping
Data source: Clarkson
In 1H 2018, 382 vessels of a combined 11.6 M GT were reported sold for demolition, a 11% increase y-o-y on an annualised
basis. The average age of vessels scrapped in 1H 2018 so far is 28.3 years. Tankers lead the scrapping sales accounting for
69% of total demolition activity in GT terms.
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Figure 16 – Materials Price
Data source: MEPS.co.uk
Since the end of 2015 the price of Hot Rolled Plate has steadily increased both in Asia and Europe reaching 632 $ (Asia) and
764$ (Europe) at the end of June 2018.
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Annex Tables - Summary of Shipbuilding Activity*
Table 1 - Orderbook by Ship Types – 30.6.2018
TYPES NO. 1.000 GT % 1.000 CGT % 1.000 DWT %
Crude Oil Tanker 296 30,927 20.6 10,061 12.2 57,963 27.9
Oil Products Tanker 124 1,323 0.9 962 1.2 2,083 1.0
Chemical Tanker 434 7,913 5.3 5,450 6.6 12,769 6.2
Other Liquids 4 2 0.0 6 0.0 2 0.0
0 0 0
A Tankers 858 40,165 26.7 16,479 19.9 72,817 35.1
0 0 0
Bulk Dry 791 45,444 30.2 17,373 21.0 84,635 40.8
Bulk Dry / Oil 0 0 0.0 0 0.0 0 0.0
Self-Discharging Bulk Dry 8 158 0.1 94 0.1 230 0.1
Other Bulk Dry 36 1,043 0.7 490 0.6 1,303 0.6
0 0 0
B Bulk Carriers 835 46,645 31.0 17,958 21.7 86,168 41.5
0 0 0
General Cargo 317 2,122 1.4 2,132 2.6 2,931 1.4
Container 334 25,017 16.6 11,652 14.1 25,773 12.4
Refrigerated Cargo 17 156 0.1 217 0.3 169 0.1
Ro-Ro Cargo 109 4,130 2.7 2,368 2.9 1,351 0.7
Other Dry Cargo 10 386 0.3 226 0.3 433 0.2
0 0 0
C Dry Cargoes 787 31,811 21.1 16,595 20.1 30,657 14.8
0 0 0
LNG Tanker 106 11,425 7.6 8,787 10.6 8,587 4.1
LPG Tanker 88 2,417 1.6 1,682 2.0 2,702 1.3
0 0 0
D Gastankers 194 13,842 9.2 10,468 12.7 11,289 5.4
0 0 0
Passenger/Ro-Ro Cargo 158 1,884 1.3 2,098 2.5 393 0.2
Passenger (Cruise) 104 8,981 6.0 9,279 11.2 725 0.3
Other Passenger Vessels/Ferries 85 111 0.1 204 0.2 28 0.0
0 0 0
E Ferries / Passenger Ships 347 10,976 7.3 11,581 14.0 1,147 0.6
0 0 0
Fish Catching 231 379 0.3 956 1.2 175 0.1
Other Fishing 29 43 0.0 116 0.1 14 0.0
Offshore Supply 430 1,110 0.7 2,436 2.9 1,026 0.5
Other Offshore 187 4,270 2.8 3,480 4.2 3,521 1.7
Research 32 120 0.1 213 0.3 28 0.0
Towing / Pushing 475 186 0.1 860 1.0 50 0.0
Dredging 55 310 0.2 477 0.6 363 0.2
Other Activities 245 630 0.4 1,000 1.2 333 0.2
0 0 0
F Other Non Cargo Vessels 1,684 7,048 4.7 9,537 11.5 5,509 2.7
TOTAL 4,705 150,488 100 82,619 100 207,587 100
Source: SEA Europe/IHS Fairplay
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Table 2 - Orderbook by Country – 30.06.2018
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Table 3 - New Orders by Ship types: January-June 2018
TYPES NO. 1.000 GT % 1.000 CGT % 1.000 DWT %
Crude Oil Tanker 50 6,542 25.6 1,950 14.7 12,430 34.79
Oil Products Tanker 11 18 0.1 32 0.2 26 0.07
Chemical Tanker 61 1,370 5.3 900 6.8 2,164 6.06
Other Liquids 0 0 0.0 0 0.0 0 0.00
0 0 0
A Tankers 122 7,929 31.0 2,882 21.8 14,620 40.92
0 0 0
Bulk Dry 93 5,715 22.3 2,154 16.3 10,697 29.94
Bulk Dry / Oil 0 0 0.0 0 0.0 0 0.00
Self-Discharging Bulk Dry 3 53 0.2 32 0.2 82 0.23
Other Bulk Dry 16 456 1.8 210 1.6 581 1.62
0 0 0
B Bulk Carriers 112 6,225 24.3 2,396 18.1 11,360 31.79
0 0 0
General Cargo 51 228 0.9 265 2.0 357 1.00
Container 68 5,124 20.0 2,460 18.6 5,582 15.62
Refrigerated Cargo 2 38 0.1 44 0.3 40 0.11
Ro-Ro Cargo 19 975 3.8 531 4.0 357 1.00
Other Dry Cargo 0 0 0.0 0 0.0 0 0.00
0 0 0
C Dry Cargoes 140 6,365 24.9 3,300 24.9 6,336 17.73
0 0 0
LNG Tanker 21 2,161 8.4 1,693 12.8 1,760 4.93
LPG Tanker 23 680 2.7 461 3.5 752 2.10
0 0 0
D Gastankers 44 2,841 11.1 2,153 16.3 2,512 7.03
0 0 0
Passenger/Ro-Ro Cargo 36 537 2.1 551 4.2 95 0.27
Passenger (Cruise) 16 1,055 4.1 1,217 9.2 87 0.24
Other Passenger Vessels/Ferries 4 1 0.0 4 0.0 0 0.00
0 0 0
E Ferries / Passenger Ships 56 1,593 6.2 1,773 13.4 182 0.51
0 0 0
Fish Catching 55 82 0.3 211 1.6 39 0.11
Other Fishing 6 8 0.0 22 0.2 0 0.00
Offshore Supply 2 1 0.0 3 0.0 0 0.00
Other Offshore 5 443 1.7 245 1.8 626 1.75
Research 3 11 0.0 22 0.2 1 0.00
Towing / Pushing 42 16 0.1 75 0.6 4 0.01
Dredging 4 24 0.1 39 0.3 32 0.09
Other Activities 25 67 0.3 116 0.9 20 0.06
0 0 0
F Other Non Cargo Vessels 142 651 2.5 733 5.5 722 2.02
TOTAL 616 25,604 100.0 13,237 100.0 35,732 100.00
Source: SEA Europe/IHS Fairplay
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Table 4- New Orders by Country: JANUARY- JUNE 2018
COUNTRY NO. 1.000 GT % 1.000 CGT %
BELGIUM 0 0 0.0 0 0.0
BULGARIA2)
2 1 0.0 3 0.0
CROATIA2)
2 35 0.1 68 0.5
CZECH REPUBLIC 0 0 0.0 0 0.0
DENMARK2)
4 4 0.0 12 0.1
ESTONIA 0 0 0.0 0 0.0
FINLAND2)
1 112 0.4 118 0.9
FRANCE2)
1 177 0.7 161 1.2
GERMANY2)
5 531 2.1 467 3.5
GREECE2)
1 0 0.0 2 0.0
IRELAND 1 0 0.0 1 0.0
ITALY2)
7 328 1.3 462 3.5
LATVIA 1 0 0.0 2 0.0
LITHUANIA 1 2 0.0 5 0.0
NETHERLANDS2)
12 25 0.1 43 0.3
POLAND2)
9 17 0.1 37 0.3
PORTUGAL2)
0 0 0.0 0 0.0
ROMANIA2)
9 71 0.3 135 1.0
SLOVAKIA 0 0 0.0 0 0.0
SLOVENIA 0 0 0.0 0 0.0
SPAIN2)
15 19 0.1 49 0.4
SWEDEN 0 0 0.0 0 0.0
UNITED KINGDOM 2 0 0.0 2 0.0
A EU-28 73 1,323 5.2 1,567 11.8
ALBANIA 0 0 0.0 0 0.0
NORWAY2)
14 28 0.1 48 0.4
RUSSIA 2 3 0.0 9 0.1
SERBIA 0 0 0.0 0 0.0
TURKEY2)
38 77 0.3 165 1.2
UKRAINE 0 0 0.0 0 0.0
B OTHER EUROPEAN 54 108 0.4 223 1.7
EU-28 + NORWAY 87 1,351 5.3 1,615 12.2
SEA EUROPE2)
MEMBERS 120 1,425 5.6 1,771 13.4
C JAPAN 139 5,095 19.9 2,317 17.5
D KOREA (SOUTH) 122 10,818 42.3 4,966 37.5
E CHINA 175 7,472 29.2 3,705 28.0
BRAZIL 0 0 0.0 0 0.0
INDIA 0 0 0.0 0 0.0
INDONESIA 6 24 0.1 32 0.2
MALAYSIA 2 0 0.0 2 0.0
PHILIPPINES 8 344 1.3 169 1.3
SINGAPORE 2 7 0.0 14 0.1
TAIWAN 4 248 1.0 97 0.7
USA 4 6 0.0 14 0.1
VIETNAM 16 152 0.6 108 0.8
OTHERS 11 7 0.0 24 0.2
F REST OF WORLD 53 788 3.1 460 3.5
WORLD TOTAL1) 616 25,604 100 13,237 100
1) Differences due to roundings
2) SEA Europe (Ships and Maritime Equipment Association) members
Source: SEA Europe/IHS Fairplay
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Table 5- Completions by Country: January- June 2018
COUNTRY NO. 1.000 GT % 1.000 CGT %
BELGIUM 0 0 0.0 0 0.0
BULGARIA2) 0 0 0.0 0 0.0
CROATIA2) 2 2 0.0 5 0.0
CZECH REPUBLIC 0 0 0.0 0 0.0
DENMARK2) 0 0 0.0 0 0.0
ESTONIA 0 0 0.0 0 0.0
FINLAND2) 2 120 0.4 131 0.7
FRANCE2) 6 230 0.7 198 1.1
GERMANY2) 6 195 0.6 197 1.1
GREECE2) 7 6 0.0 17 0.1
IRELAND 0 0 0.0 0 0.0
ITALY2) 5 377 1.1 409 2.3
LATVIA 2 1 0.0 3 0.0
LITHUANIA 1 5 0.0 10 0.1
NETHERLANDS2) 20 14 0.0 39 0.2
POLAND2) 20 36 0.1 79 0.4
PORTUGAL2) 1 0 0.0 1 0.0
ROMANIA2) 21 112 0.3 126 0.7
SLOVAKIA 0 0 0.0 0 0.0
SLOVENIA 0 0 0.0 0 0.0
SPAIN2) 16 96 0.3 67 0.4
SWEDEN 0 0 0.0 0 0.0
UNITED KINGDOM 4 1 0.0 5 0.0
A EU-28 113 1,197 3.6 1,286 7.1
ALBANIA 0 0 0.0 0 0.0
NORWAY2) 8 29 0.1 49 0.3
RUSSIA 3 17 0.1 20 0.1
SERBIA 0 0 0.0 0 0.0
TURKEY2) 32 47 0.1 101 0.6
UKRAINE 1 1 0.0 3 0.0
B OTHER EUROPEAN 44 94 0.3 173 1.0
EU-28 + NORWAY 121 1,226 3.6 1,335 7.4
SEA EUROPE2) MEMBERS 146 1,267 3.8 1,419 7.8
C JAPAN 245 8,167 24.3 4,202 23.1
D KOREA (SOUTH) 109 8,741 26.0 4,339 23.9
E CHINA 367 12,896 38.4 6,401 35.3
BRAZIL 10 401 1.2 225 1.2
INDIA 14 10 0.0 27 0.2
INDONESIA 70 77 0.2 165 0.9
MALAYSIA 33 14 0.0 55 0.3
PHILIPPINES 20 1,240 3.7 560 3.1
SINGAPORE 8 75 0.2 65 0.4
TAIWAN 21 245 0.7 192 1.1
USA 29 107 0.3 132 0.7
VIETNAM 37 240 0.7 190 1.0
OTHERS 43 78 0.2 141 0.8
F REST OF WORLD 285 2,487 7.4 1,752 9.6
WORLD TOTAL1) 1,163 33,582 100.0 18,152 100.0
1) Differences due to roundings
2) SEA Europe (Ships and Maritime Equipment Association) members
Source: SEA Europe/IHS Fairplay
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Table 6 - Completions by Shiptypes: January- June 2018
TYPES NO. 1.000 GT % 1.000 CGT % 1.000 DWT %
Crude Oil Tanker 78 7,251 21.6 2,482 13.7 13,701 29.5
Oil Products Tanker 51 332 1.0 324 1.8 473 1.0
Chemical Tanker 103 1,490 4.4 1,081 6.0 2,405 5.2
Other Liquids 2 5 0.0 7 0.0 5 0.0
0 0 0
A Tankers 234 9,078 27.0 3,893 21.4 16,583 35.6
0 0 0
Bulk Dry 157 8,166 24.3 3,254 17.9 15,053 32.4
Bulk Dry / Oil 0 0 0.0 0 0.0 0 0.0
Self-Discharging Bulk Dry 3 115 0.3 54 0.3 170 0.4
Other Bulk Dry 9 58 0.2 49 0.3 77 0.2
0 0 0
B Bulk Carriers 169 8,339 24.8 3,357 18.5 15,300 32.9
0 0 0
General Cargo 75 504 1.5 479 2.6 755 1.6
Container 101 8,518 25.4 3,893 21.4 8,819 19.0
Refrigerated Cargo 4 47 0.1 62 0.3 48 0.1
Ro-Ro Cargo 28 627 1.9 395 2.2 221 0.5
Other Dry Cargo 10 204 0.6 133 0.7 225 0.5
0 0 0
C Dry Cargoes 218 9,900 29.5 4,961 27.3 10,068 21.6
0 0 0
LNG Tanker 29 3,394 10.1 2,578 14.2 2,578 5.5
LPG Tanker 26 637 1.9 491 2.7 725 1.6
0 0 0
D Gastankers 55 4,031 12.0 3,069 16.9 3,303 7.1
0 0 0
Passenger/Ro-Ro Cargo 34 129 0.4 211 1.2 37 0.1
Passenger (Cruise) 11 896 2.7 905 5.0 74 0.2
Other Passenger Vessels/Ferries 48 37 0.1 87 0.5 13 0.0
0 0 0
E Ferries / Passenger Ships 93 1,062 3.2 1,203 6.6 124 0.3
0 0 0
Fish Catching 88 85 0.3 245 1.4 36 0.1
Other Fishing 3 5 0.0 13 0.1 3 0.0
Offshore Supply 56 149 0.4 311 1.7 131 0.3
Other Offshore 34 776 2.3 625 3.4 848 1.8
Research 1 3 0.0 6 0.0 1 0.0
Towing / Pushing 159 68 0.2 292 1.6 39 0.1
Dredging 2 14 0.0 23 0.1 18 0.0
Other Activities 51 72 0.2 153 0.8 65 0.1
0 0 0
F Other Non Cargo Vessels 394 1,171 3.5 1,669 9.2 1,141 2.5
0 0 0
TOTAL 1,163 33,582 100.0 18,152 100.0 46,520 100.0
Source: SEA Europe/IHS Fairplay
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NEWS- MARKET & POLICY DEVELOPMENTS
Japan
1. Chinese and South Korean support for shipbuilders irks Japan. Japan is growing frustrated by government assistance in China and South Korea to their ailing shipbuilding industries, with Prime Minister Shinzo Abe even broaching the issue with his counterparts at a trilateral summit. Source: HellenicShippingNews, (07/06/2018)
2. Japan mulls suing S. Korea at WTO over assistance to shipbuilders. The Japanese government is considering filing a complaint with the World Trade Organization against South Korea, alleging it unfairly subsidized shipbuilders and caused excessive price competition in the global market. Source : HellenicShippingNews, (26/06/2018)
3. Japan to Launch First LNG Bunkering Vessel in 2020. Central LNG Shipping Japan Corporation (CLS) placed an order a 3,500 m3 LNG bunkering vessel (LBV) on July 6, the first to be operated in Japan. The joint venture company, established by Kawasaki Kisen Kaisha, Chubu Electric Power, Toyota Tsusho Corporation, and Nippon Yusen Kabushiki Kaisha, ordered the new vessel from Japanese shipbuilder Kawasaki Heavy Industries. Source: WorldMaritimenews, 06.07.18
4. Japan Welcomes Foreign Workers to its Shipyards. Japan is investing in its Immigration Bureau - not to deter or deport economic migrants, but to welcome them in. Faced with an aging population and a shrinking workforce, Japan is opening up its economy to 500,000 blue-collar workers from abroad in order to fill positions in shipbuilding and four other labor-intensive industries. Source: MaritimeExecutive, 29.08.18
5. Japan's Aug vessel orders double on year. Japanese shipbuilders received export orders for a total 1.53 million gross tons across 21 vessels in August, up 100.2% year on year and surging 161.8% from July and posting the first year-on-year rise since May, Japan Ship Exporters Association data showed. A JSEA official said the increase may be the start of a rush of orders in the lead-up to the International Maritime Organization's requirements to use lower sulphur fuel from January 2020. Source: 17.09.18, Shipping Herald.
6. Japanese shipbuilders cut fiscal 2018-19 steel demand forecast on lower orders. The Shipbuilders Association of Japan has reduced its steel demand forecast for the 2018-19 fiscal year (April-March) due to a slump in new building orders. The association now says its members will require 3.11 million mt of ordinary carbon steel in fiscal 2018-19, down 3% year on year and 6.8% less than it forecast in April. SAJ compiled its forecast from a survey of members, which represent about 80% of Japan's shipbuilding capacity. Source: HellenicShipping News, 10.09.18
South Korea
7. Korea Ocean Business Corporation allocates $251m to support domestic lines. Korea Ocean Business Corporation (KOTC), South Korea’s state-sponsored ship finance unit, will allocate a first round of around KRW26.8bn ($251m) subsidy to support the fleet renewal of domestic owners. The six shipping companies qualified for the first round of the subsidies are Hyundai Merchant Marine (HMM), Sinokor Merchant Marine, CK Line, Namsung Shipping, Pan Continental Shipping, and Dongjin Shipping, and they will be granted subsidies only after they scrapped older vessels and order eco-friendly newbuildings. This week, HMM has announced a plan to order 20 mega containerships at three domestic yards. Source: Splash247, (07/06/2018)
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8. Seoul offers financial aid for marine equipment makers. South Korea’s Financial Services Commission
(FSC) said that financial relief will be offered to suppliers of local shipbuilders. The announcement was made during a visit by FSC’s chief Choi Jong-ko to the office of Panasia, a local manufacturer of ballast water treatment systems and other ship parts Choi was formerly the head of the Export-Import Bank of Korea prior to his appointment to FSC in July 2017. Source: Fairplay, 20 June 2018
9. South Korean shipbuilders beat Chinese rivals in orders in H1 2018 – Clarkson South Korean shipbuilders beat Chinese rivals in ship orders in the first half of 2018 for the first time in three years, according to data by Clarkson Research Services. In the January-June period, South Korean shipbuilders clinched orders equal to 4.96 million compensated gross tons (CGTs) to build 115 vessels. This accounted for 40 percent of ship orders placed globally, the research firm said. South Korea’s three biggest shipyards - Hyundai Heavy Industries Co., Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. - all won orders to build vessels, including very large crude oil carriers and liquefied natural gas carriers. Source: Yonhap, 12.07.18
10. HHI trio sees 45% upturn in order intakes. Hyundai Heavy Industries (HHI) Group announced on July 12 that its accumulated order intakes at the end of June recorded $2.86bn (Shipbuilding, $2.105bn; offshore, $2m; plant, $86m; engine and machinery, $673m). This is a 27.2% year-on-year increase. Shipbuilding grew by 27%, while offshore suffered 98.6% of degrowth. Plant rocketed by 681.8%, while engine and machinery enjoyed 50.9% growth. The volume of new tonnage HHI has been awarded during the same period is just 28. Source: KOMEC, 17.07.18
11. STX obtains bank guarantee to save latest ship order. South Korea's troubled mid-sized shipbuilder STX Offshore & Shipbuilding Co. saved a hard-won vessel order after persuading state leader Korea Development Bank to back the contract. STX said Wednesday its main creditor bank KDB agreed to provide a refund guarantee for a deal it signed with a Greek shipping company in June to deliver two 50,000-deadweight-ton class tankers. Source: HellenicShipping News, 12.09.18
12. Moon stresses need of winning back 1st place. Korean President Moon Jae-In visited Daewoo Shipbuilding & Offshore Shipbuilding (DSME) and stressed, "Korea has to take the world's No.1 shipbuilding nation title back." (…) He said, "We will make huge investments in autonomous vessel, as well as smart yard. For the innovation growth of shipbuilding industry, also, the government plans to offer financial supports and create domestic demands." Moon continued, "The Korean government order governmental vessels worth KRW 1.5trn (approximately $1.34bn) in the second half of the year, before spending KRW 95.2bn in 2019 to raise competitiveness of small- and mid-sized shipyards and component providers." Source: Asiasis, 19.09.18
13. [Marine] Korea envisioning 100 LNG ships The Ministry of Trade, Industry and Energy (MOTIE) of Korea
announced that it would build 100 LNG-powered ships and establish five LNG bunkering facilities by
2025. A MOTIE official introduced such ambition in 'International LNG Conference 2018,' a segment in
'Marine Tech Korea 2018.' He said: 'Tightening environmental regulation will be the new growth engine
in shipbuilding and shipping industry. LNG powered vessels and related equipment will be one of its
elements. Source: ASIASIS, 19.09.18
14. SHI won an LNG carrier. Samsung Heavy Industries (SHI) announced on October 1 that it won a newbuilding deal for a 174,000-cbm LNG carrier from an Asian operator at around $179.8m. The contract is valid from September 28, 2018, to March 31, 2021. The name of the orderer and the detail of the ship is not disclosed. Source: Asiasis, 01.10.18
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China
16. Grimaldi Group places $400m shipbuilding order with Jinling. Italy-based Grimaldi Group has placed an order valued at more than $400m with Chinese shipyard Jinling for the construction of six ro/ro vessels known as Grimaldi Green 5th Generation (GG5G). Source: Shiptechnology, 02.05.18
17. OECD and China in talks to set shipyard state aid rules. State aid in the shipbuilding industry is coming under scrutiny again as the Organisation of Economic Co-operation and Development meets with Chinese authorities in an effort to persuade Beijing to participate in the latest move to develop regulations that will prevent market distortions. Source: Fairplay, 22/06/18
18. Cruise Ship Construction: China Rising. China earns cruise newbuild business, aims for ship finance While China has steadily built shipbuilding market share, cruise ship construction - more specifically mastering the logistical complexities inherent in cruise ship design, outfit and construction - has proved elusive. But it appears that Chinese shipbuilders have turned the corner, with contracts signed for the first cruise newbuilds. Source: MarineLink 20/06/18
19. China's 1st nuclear-powered icebreaker in the pipeline China one step closer to nuke-powered aircraft carrier with cutting-edge icebreaker comes on stream. China has opened the bid to construct its first nuclear-powered icebreaker support ship, a move to prepare for the construction of a nuclear-powered aircraft carrier, military observers said. China National Nuclear Corporation on Thursday opened public bidding for the nuclear-powered icebreaker ship, its website said. It will be China's first nuclear-powered icebreaker support ship, and it will be able to break ice, open waterways in the polar region and provide electricity. Source: GlobalSecurity, (25/06/2018)
20. China opens up yards to foreign ownership. Shipbuilding on list of industries where limits on overseas investment have been eased. Source: TradeWinds, 29.07.18
21. MSC awards major scrubber deal to Chinese shipyards Box shipping giant Mediterranean Shipping Company (MSC) has signed a framework agreement with French bank BNP Paribas and China Export & Credit Insurance Corporation (Sinosure) for the financing of a major scrubber conversion deal. Under the agreement, MSC will award scrubber conversion work for its containership fleet to a number of shipyards including subsidiary yards of Cosco Shipping Heavy Industry and China Shipbuilding Industry Corporation. Source: Splash 247, 2.08.18
22. DFDS Orders One More RoRo at Jinling Shipyard. Danish shipping and logistics company DFDS has decided to order an additional RoRo newbuilding from Chinese Jinling Shipyard, exercising an option obtained when ordering its previous ferries. The new ferries will be deployed in route networks in northern Europe and the Mediterranean. Source: WorldMaritimenews, 16.08.18
23. Cosco eyes scrubbers ahead of sulphur cap. Chinese giant is considering installing scrubbers on its ultra-large container ships, according to source close to the company. Source: Lloyds’ List, 24.08.18
24. Fincantieri extends cooperation with China: Fincantieri and China State Shipbuilding Corporation (CSSC) signed a memorandum of understanding for the extension of the industrial cooperation already existing between the two groups to cover not just cruising but all sectors of merchant shipbuilding. Source: Seatrade Cruise news, 28.08.18
25. Megaships being built in Shanghai: China is building the world's largest container ships, each of which will be able to carry more than 23,000 standard containers, which together can hold, for example, more than 1 billion units of the Apple iPhone X. The construction of the first two megaships started in late July. They're being built by Jiangnan Shipyard Group and Hudong-Zhonghua Shipbuilding Group, both
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of Shanghai, according to China State Shipbuilding Corp, a State-owned giant that owns the two companies. Source: China Daily, 15.09.18
26. Ulstein: SunStone Orders One More Expedition Cruise Vessel. Miami-based expedition vessels provider SunStone Ships has declared the first option for an X-BOW expedition cruise vessel, ship designer Ulstein informed. The ship is scheduled for delivery in August 2020, according to Norway-based Ulstein. (...)Ulstein’s contract is with the China Merchants Group (CMG), China, and the vessels will be built at their yard. Ulstein is responsible for the delivery of the design and equipment package. Source: WorldMaritimeNews, 05.10.18
Europe
27. Maersk CEO Calls For End to Shipping Subsidies. Soren Skou, head of the world’s biggest container ship
operator, says government backing of carriers is creating overcapacity, distorting markets and pricing. Source: WallStreetJournal, 26.04.18
28. Hurtigruten Acquires Kleven. KV Holding AS, a company owned by Norwegian cruise, ferry and cargo operator Hurtigruten, is to acquire compatriot builder of ferries and offshore support vessels Kleven. As informed, KVE Holding AS will own 100 percent of the shares in Kleven Verft AS, Kleven Maritime Contracting AS and Kleven Maritime Technology AS. Current owners will retain the remaining Kleven companies, including Myklebust Verft AS. Source: WorldMaritimeNews, 12.06.18
29. Denmark wants EU to enter fight against South Korean state aid. Denmark's Minister of Business Brian
Mikkelsen is again criticizing the South Korean's authorities' comprehensive state aid scheme. He hopes to be backed by the EU Commission after OECD has disappointed, he tells ShippingWatch. Source: ShippingWatch, 19.06.18
30. German yard plans to boost repair capacity. The creation of a new North German ship repair and
conversion hub with up to two floating docks is planned in Brake on the Weser after the leasing there of an old shipyard site, writes Tom Todd. Source: MaritimeJournal, 21.06.18
31. Royal Caribbean to Buy Majority Stake in Silversea Cruises. Cruise ship company Royal Caribbean Cruises (RCL) is to acquire a 66.7% equity stake in Silversea Cruises based on an enterprise value of approximately USD 2 billion. Royal Caribbean said that the price of the equity being acquired is around USD 1 billion, adding that it plans to finance the purchase through debt. Source: World Maritime News, 14.06.18
32. Kongsberg buying Rolls-Royce Commercial Marine business in $661m deal. Norwegian technology and equipment supplier Kongsberg is buying Rolls-Royce Commercial Marine in a deal valued at GBP500m ($661m). The deal to buy Rolls-Royce's commercial marine business will see Kongsberg broadening its scope of business in the maritime sphere. Source: SeatrademaritimeNews, 06.07.18
33. 2017: A Golden Year for Cruise Shipbuilding. Last year was another golden year for the cruise shipbuilding sector, ASSONAVE, an association representing the majority of the Italian shipbuilding industry, said. Source: WorldMaritimeNews, 13.07.18
34. Norled Orders Two Diesel Electric Hybrid Ferries in Poland. Norway’s ferry operator Norled has placed an order for two double ended diesel electric hybrid ferries, based on the LMG Marin design LMG 120-DEH. The shipbuilding contract was signed on July 11, 2018 with Poland-based Remontowa Shipbuilding. Source: WorldMaritimeNews, 20.07.18
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35. STX France Changes Name to Chantiers de l’Atlantique. STX France, the French shipyard based in Saint-Nazaire, has changed its name back to Chantiers de l’Atlantique. The company is undergoing an acquisition process by its Italian counterpart Fincantieri. The Italian shipbuilder inked the acquisition deal with the French state in February this year. Once all regulatory approvals are cleared, Fincantieri will assume 50 pct ownership of Chantiers de l’Atlantique, with an additional 1 pct to be borrowed from the French state, represented by the Agence des Participations de l’Etat (APE). The French state will assume 33.34 pct, Naval Group 10 pct, company employees up to 2.40 pct and local companies up to 3.26 pct. Source: WorldMaritimenews, 20.07.18
36. Damen Shipyards Group assumes operational control at Mangalia shipyard. To signify its first day of operations at Damen Shipyards Mangalia in Romania, Damen held a modest ceremony at the yard on Monday, July 23rd. The celebrations mark Damen's successful completion of the transaction with Daewoo Shipbuilding & Marine Engineering (DSME) for the Mangalia shipyard, formerly known as Daewoo Mangalia Heavy Industries (DMHI). The yard, which will be renamed Damen Shipyards Mangalia, will be operated as a joint venture with the Romanian Government. Source: HellenicShipNews, 23.07.18
37. Dutch Maritime Sector Recovers after Difficult Years. A cautious recovery became apparent in the global shipbuilding industry in 2017, especially over the final months of the year. Also the Dutch maritime cluster sees a positive change. 'We can be proud of the many orders that our industry has taken in 2017, despite the many challenges faced,' Bas Ort, chair of the Netherlands Maritime Technology (NMT) trade association, said. Source: WorldMaritimeNews, 29.07.18
38. World’s 1st LNG-Powered Cruise Ship Sees the Light of Day; AIDAnova, the world’s first cruise ship
powered with LNG, has left Meyer Werft’s building dock in Papenburg, Germany. It took almost two hours to float out AIDA Cruises’ newbuilding in the evening hours of August 21. The 180,000-ton vessel will now berth at Meyer Werft’s outfitting pier where its mast and funnel cladding will be fitted. In addition, further testing with LNG will be performed on the ship’s engines and acceptance procedures by the shipowners will also take place. Source: WorldMaritimeNews, 22.08.18
39. Fincantieri's Backlog at Record USD 37 Bn Italian shipbuilder Fincantieri witnessed its orderbook jump
to 109 vessel during July, driven by multiple cruise ship and naval vessel orders. At June 30, 2018 the group's order portfolio consisted of 99 ships, which increased to 109 with the orders acquired in July. "Standing already at a record level at the end of the first half, with the new orders acquired during July our backlog now exceeds EUR 32 billion (USD 37). Source: WorldMaritimenews, 27.09.18
40. Croatia ready to help shipyards but wants long-term sustainable solution. Croatian Prime Minister
Andrej Plenkovic said that the government has a political will to help the troubled shipyard Uljanik, news agency HINA reported. Source: Xinhua, 13.09.18
41. Cyprus’ FSRU bid expected to open soon. It turned out that Cyprus has finally started igniting a bid for floating LNG storage and regassification unit (FSRU) after a long preparation (…). Meanwhile, this project called “CyprusGas2EU” is supported by EUR 101m grants from the EU Connecting Europe Facility (…). Source: Asiasis, 12.09.18
42. Thyssenkrupp to spin off yards division. Thyssenkrupp is to separate its shipbuilding segment from its industrials division with a view to selling its yards business. The group's marine unit will be spun off from its Industrial Solutions division and managed directly by Thyssenkrupp from October 1. There are likely to be at least two suitors for the yards division, one from Germany as well as a French contender, according to Reuters. Source: Splash247, 17.09.18
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43. EU will defend carriers and yards against Asian subsidies. Asian state subsidies are significantly impacting competition for European carriers and yards, says the EU Commission, which will defend the maritime industry against overproduction of vessels. The EU will do what is necessary to shield European carriers and yards from being impacted by the unfair subsidies from China and South Korea that can significantly distort competition. This appears in a response from European Commissioner for Trade Cecilia Malmström, who suggests that state subsidies and overcapacity in the sector could undermine the EU's "shipbuilding companies and carriers”.Source: ShippingWatch, 26.09.18
Equipment, Fuels and Materials
44. Rolls-Royce engines for new Brazilian tugs. Rolls-Royce has won an order to supply engines for a series of tugs being built in Brazil, continuing a long-established relationship with the Itajai-based shipyard. Source: Maritime Journal, 22.06.18
45. Grimaldi signs on for Alfa Laval PureSOx connectivity solution. The Grimaldi Group is increasing its commitment to the use of scrubbers, announcing it will be using Alfa Laval PureSOx scrubber connectivity on five vessels operated by its Atlantic Container Line (ACL) unit. Source: SeaTrade MaritimeNews, 26.06.18
46. Clarksons: A Quarter of Ships on Order to Be Fitted with Scrubbers The time of the “wait and see” approach to the 2020 sulphur cap is over as owners and operators have realized that the implementation date would not be delayed. According to Clarksons, 2018 has seen enthusiasm for scrubbers grow and now over 25 percent of the orderbook by tonnage is confirmed to feature scrubbers. Nevertheless, the figure is still under 3 pct of the fleet. Source: WorldMaritimenews, 30.08.18
47. DFDS investing $46.7m to equip Med ro-ro fleet with scrubbers: DFDS is investing DKK300m ($46.8m)
to equip its fleet of 12 freight ferries in the Mediterranean with scrubbers. Danish ferry operator, which was one of the earlier movers on fitting exhaust gas cleaning systems to its vessels to comply with Baltic and North Europe Emission Control Area (ECA), is installing scrubbers on 12 vessels deployed on freight routes in the Mediterranean between Turkey, Italy, Greece and France. Source: SEATRADE Maritime News, 13.09.18
48. Maersk to install scrubbers on a 'limited number' of vessels: Despite Maersk Line's stance that sulphur should be removed from marine fuel at the refining stage, the Danish shipping giant is going to install scrubbers on a limited number of vessels. Reuters reported that it would be one of several elements Maersk would use to be compliant with the IMO's 0.5% sulphur cap for marine fuels globally from 1 January 2020. Source: SEATRADE Maritime News, 13.09.18
49. Wärtsilä wins world's first 'LPG as fuel' order for gas carriers: Wärtsilä will provide an integrated cargo handling and fuel gas system for two new gas carrier vessels for Exmar, the Belgium-based fleet owner. The ships, which will transport liquefied petroleum gas (LPG), are being built at HHIC-Philippines (Hanjin Heavy Industries & Construction Philippines) in Subic Bay. The design of these ships focuses on high efficiency and a more sustainable operational profile. Source: MarineLink, 13.08.18
50. Cosco Forms Joint Venture with Furuno: China’s Cosco Shipping Technology (CS Tech) has teamed up with Japan’s Furuno Electric and Heisei Trading to form a joint venture in the maritime navigation and communications market. Source: MarineLink, 13.09.18
51. Cruise and fishing boost business for MAN: Surging orders in the cruise and fishing sectors are buoying MAN Energy Solutions' four-stroke business and highlighting its expertise across the propulsion system. The company has reported that it is experiencing a record order-intake within its cruise business,
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winning orders to supply seven new cruise ships with engines and exhaust gas treatment systems in the first eight months of the year. Source: Motorship, 23.09.18
Policy and Regulation
52. Meeting the 2020 sulphur cap - ISO to develop standard for methanol as marine fuel. An ISO standard is to be developed for methanol as a marine fuel as owners look to a variety of alternatives to meet the International Maritime Organization's (IMO) 2020 0.5% sulphur cap.The Methanol Institute (MI) said it welcome a move by the IMO to invite the International Organization for Standardization (ISO) to develop a standard for methyl/ethyl alcohol as a marine fuel and a standard for methyl/ethyl alcohol
fuel couplings. Source: SEATRADE Maritime News, 12.07.18
53. Ship operators may fall into BWMS bottleneck. Shipowners are 'playing with fire' if they haven't
complied with the IMO's Ballast Water Management Convention standards by the required deadlines, the managing director of De Nora has warned. Dr Stelios Kyriacou said in a meeting hosted by British Engineering Manufacturers Association (BEMA) there was a consensus that shipowners and operators are running out of time in placing orders and selecting equipment, which is already resulting in 'various areas of bottlenecks. Source: Motorship, 13.09.18
54. IMO drawing up guidelines on implementation of 2020 global sulphur cap: The IMO is working with its Member States and the shipping industry 'to identify and mitigate transitional issues' surrounding introduction of the global sulphur cap in January 2020, delegates were told at the 5th biennial gmec (global maritime environment congress) taking place at the SMM trade show in Hamburg this week. Source: SEATRADE Maritime news, 05.09.18
Innovation
55. YARA selects Norwegian shipbuilder VARD for zero-emission vessel Yara Birkeland. The world's first autonomous and electric container vessel is one step closer to launch, as YARA signs a deal with VARD worth appr NOK 250 million to build the vessel. VARD will deliver Yara Birkeland for launch in early 2020, and the vessel will gradually move from manned operation to fully autonomous operation by 2022. In May 2017, YARA and technology company KONGSBERG announced a partnership to build the world's first autonomous, electric container vessel. Source: LogisticNews, 20.08.18
56. Rolls-Royce launches new battery system for ships; Rolls-Royce is launching a lithium-ion based energy
storage system for ships. The gain for the ship owners is a clean, safe and cost-efficient complete system, the Company said in its press release. Energy storage is a major green investment for a ship owner. Returns are maximised when the system is correctly dimensioned for the specific ship, and includes intelligent power control. Source: PortNews, 16.08.18
57. New Crane Device to Cut Loading Time. Norwegian company Kolberg Capary Lautom AS has launched a gyro-based stabilisation device called 'YawSTOP' to enable rotation-free and rotation-controlled lifting and loading of cargo and goods by cranes to make shipping and more efficient, reliable and safe. Source: TheMaritimeEexecutive, 26.08.18
58. Hybrid propulsion delivers environmental benefits. Currently 98% of sea-going vessels are diesel powered, but ship owners and operators are taking an increasing interest in new technologies that will allow them to cut their fuel bills and reduce the environmental impact of their operations. One of the most attractive of these technologies is electric hybrid propulsion, as Scott Blackwell of Danfoss Drives explains. Source: MarineLog, 23.08.18
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59. Wartsila part to develop state-of-the-art container vessel. The technology group Wärtsilä is a party to an agreement made between leading marine industry players to collaborate in developing new levels of performance and environmental efficiency for container vessels. Source: Wartsila, 04.09.18
60. New Maritime Technology Development Firm Launched in Norway. Five Norwegian investors with experience from maritime technology innovation and industry have joined forces to establish Invento Team. The company said it will focus on technical solutions and products for the global marketplace. 'We're looking to establish a new cluster for maritime electronics development in the Haugesund area and are aiming to attract highly skilled development engineers from a range of different disciplines. Source: Subsea, 04.09.18
61. Rolls-Royce Health Management Solutions to Harness Power of Data. Rolls-Royce continues to
develop its ship intelligence offerings to the market, and now introduces a pioneering new solution for Health Management of ship equipment. The technology is aimed at elevating the way in which customers manage and maintain the equipment and systems onboard their ships. Health Management is designed to provide ship operators with an unsurpassed level of understanding of the operational health and performance of all the machinery installations onboard. Source: MarineLink, 03.09.18
Global
62. Russia ponders subsidy for smaller vessel newbuilds. Part of the Russian government has suggested subsidies for newbuild vessels too small to qualify for the investment quota scheme, reports Port News.Rosrybolovstvo -- the Russian Federal Fisheries Agency -- suggests compensating 25% of the total cost of construction for small fishing ships not covered by the 'keel quotas' program, its head, Peotr Savchuk, has said. According to Rosrybolovstvo, the demand for such ships in 2019-2030 is estimated at 70-100 units for a total of RUB 16. Source: Undercurrentnews, 29.07.18
63. Rosneft seeks more support for Zvezda shipyard. Russia’s state-run oil company Rosneft has asked the Russian government for more supports for shipbuilding and offshore plant cluster at Zvezda shipyard which is under construction in Russian Far East. According to a report of RegNews on August 4, Rosneft CEO Igor Sechin, suggested a plan to the government to force domestic oil and gas companies such as Gazprom, Novatek and etc. to build vessels and offshore structures only at Far Eastern Shipbuilding and Ship Repair Center. For this, Igor Sechin is said to have proposed to Vladimir Putin, Russian President, a legislation of special incentive encouraging the newbuilding orders to be placed at Zvezda. Mr. Sechin suggested a policy to impose domestic companies a property tax on using foreign vessels. He also suggested that the government put sovereign wealth fund for successful Zvezda project. Source: Asiasis, 12.08.18
64. LNG ship orders pour in: Wood Mackenzie. With an unprecedented wave of new LNG supply projects coming on stream, 33 new LNG ships have been ordered globally so far this year, compared to 19 in the whole of 2017 and just six in 2016. Owners have been tempted by higher spot/short-term charter rates, still-low newbuilding prices and rapidly growing LNG trade. New LNG supply is being absorbed far more easily than many expected by booming demand in Asia, according to leading energy consultancy firm Wood Mackenzie. Source: 18.09.18, The Peninsula
65. Turkish shipbuilders seek to boost indigenous ratio. Turkish shipbuilders are looking to boost the indigenous ratio in the shipbuilding industry above the existing 70 percent, a top trade group told Anadolu Agency. Mehtap Karahalli Ozdemir, head of the Turkish Shipbuilders Association (GISBIR), said that Turkish shipyards are qualified to produce ships to order, with all necessary features, including military ships. “Turkey has managed to become one of the world’s leading shipbuilding countries,” said Ozdemir. Source: Shipbuilding News, 24/09/2018
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Naval
66. China military developing unmanned AI submarines to launch a new era of sea power. China is developing large, smart and relatively low-cost unmanned submarines that can roam the world's oceans to perform a wide range of missions, from reconnaissance to mine placement to even suicide attacks against enemy vessels, according to scientists involved in these artificial intelligence (AI) projects. The autonomous robotic submarines are expected to be deployed in the early 2020s. Source: South China Morning Post, 25.07.18
67. Fincantieri Wins Contract for Saudi Multi-Mission Surface Combatant. The United States government awarded to a Lockheed Martin-led team, which includes Fincantieri Marinette Marine (FMM), an Undefinitized Contract Action (UCA), to advance work in support of the construction of four Multi-Mission Surface Combatants ships, as part of the Foreign Military Sales program for the Kingdom of Saudi Arabia. Fincantieri will be the builder at the Marinette yard in Wisconsin. Source: TheMaritimeExecutive, 20.07.18
68. Further details emerge of China's naval nuclear ambitions. China's state-owned media have furthered the notion that the country's aircraft carrier fleet will feature nuclear-powered support vessels. 'China's nuclear-powered aircraft carriers, which will definitely be built, will need nuclear-powered supply ships,' stated a 10 September report published by the China Military Online website. Source: Janes, 11.09.18
SEA Europe news
69. The launch of Horizon Europe: SEA Europe welcomes a larger budget for the future Research and Innovation Programme: On 7 June, the European Commission launched Horizon Europe, the next European Research and Innovation Funding Programme. (…) In a first reaction, SEA Europe’s Secretary General, Christophe Tytgat, said: “SEA Europe welcomes that the European Commission foresees a larger budget for the future Research and Innovation Programme, including a simplification of the rules. It not only shows the importance of Research and Innovation for Europe and for its competitiveness. It will increase the success rate of applications as well (…)”. “For the Waterborne Sector, it is now essential to persuade EU policy-makers in the next period that our sector is essential for the future of Europe as well as for Europe’s global maritime and marine leadership”, added Mr. Tytgat. “For this very reason, it is of key importance that the Waterborne sector gets a strong position in the future Research and Innovation Programme. Source: SEA Europe Press Release, 21.06.18
70. European Commission Officials visit Dutch Maritime Technology Sector. On Thursday July 19, a delegation of the European Commission (EC) from DG RTD and DG GROW visited the Dutch Maritime Technology sector. The sector demonstrated the importance of Research, Development and Innovation for its global competitiveness and underlined the importance of the financial support from the EU H2020 Research & Innovation Programme. The visit was a combined effort of the Dutch Maritime Technology Sector represented by the Netherlands Maritime Technology Association in cooperation with the Waterborne Technology Platform and SEA Europe. Source: NMT, SEA Europe, and Waterborne TP Press Release, 20.07.18
71. SEA EUROPE APPOINTED JAAP GEBRAAD AS DIRECTOR RESEARCH AND DEVELOPMENT AFFAIRS. SEA Europe appointed Jaap Gebraad (NL) as the association’s new Director, responsible for Research,
Development and Innovation. Jaap started on the 13th of August. (…)“I am very happy to welcome Jaap
as new member of the team at SEA Europe”, said SEA Europe’s Secretary General Christophe Tytgat. “Jaap has extensive expertise on research, development and innovation issues as well as on social related topics. He has also played an important role, including as coordinator, in EU-funded projects relating to the sector of inland navigation. I am confident that the network and political expertise of
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Jaap will greatly benefit the work of SEA Europe’s RDI working group as well as the Waterborne Technology Platform, of which Jaap will be the secretary”. Source: SEA Europe Press Release, 23.08.18
72. The Connecting Europe Facility (CEF) Post 2020.On 6 June 2018, the European Commission proposed
the renewal of the current Connecting Europe Facility programme for the period 2021 - 2027. (…) “SEA
Europe very much welcomes that the European Commission foresees a larger budget for the future Connecting Europe Facility, including the possibility to deploy technologies developed through the EU R&I Programmes. The Waterborne sector contributes largely to ensure smart, sustainable, inclusive, safe and secure mobility”. SEA Europe also welcomes that Motorways-of-the-Sea will remain a priority. “At the same time, we are aware that in the upcoming period, we should persuade EU policy-makers to shape the CEF programme in such a way, that research and deployment activities for the entire waterborne sector can be supported by the CEF Programme as well”, said SEA Europe’s Secretary General Christophe Tytgat. Source: SEA Europe, Press Release 04.10.18
73. European shipowners and maritime technology industry call for decisive actions against unfair trade practices and in favour of global level playing field. SEA Europe and ECSA, the trade associations representing respectively European shipbuilding and maritime equipment and European shipowners, welcome the recent statement of EU Trade Commission Cecilia Malmström against unfair trade practices in the Far East. SEA Europe and ECSA now call upon the European Commission and the EU Member States to take concrete and decisive actions against such practices and in favour of a true global level playing field for the European industry. Market-oriented conditions, rules-based trade, and open markets are essential to allow European shipping, shipbuilding and marine equipment companies to operate internationally. (…) Source: SEA Europe-ECSA Joint Press Release, 05.10.18
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Glossary and Abbreviations:
BDI – the Baltic Dry Index, it tracks changes in freight rates for dry bulk cargoes and is published daily by the Baltic Exchange in London.
Bunker Fuel – type of fuel used aboard ships.
Cabotage - coastal trade, the movement of goods by ship between ports on the same coast or between ports within the
same country. Many nations, including the United States, have cabotage laws which require national flag vessels only to
provide shipments between domestic ports.
Capesize – a dry bulk vessel around 180,000 dwt or with a beam that prevents passage via the Panama Canal, forcing the
ship to pass around Cape Horn.
Cargo (also freight) – in maritime context, goods loaded into a ship and transported over a certain distance usually for
commercial gain.
SEA EUROPE members - Croatia (from 2002), Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Norway,
Poland, Portugal, Romania (from 2000), Spain, Bulgaria (from 2009) and Turkey (from 2012)
Charter - hiring out of a ship by a shipowner.
Charterer - the person who has chartered the ship for a specified voyage or period of time.
Charter rate - the tariff applied for chartering tonnage in a particular trade. It depends on the charter type:
• Spot charter – contract for the carriage of a single cargo from one specified port to another in the immediate
future (abt. 2 months). Spot charters can be spot voyage charters or spot time charters.
• Voyage Charter - the charterer pays for the use of the vessel's cargo spaces for one or more voyages. Payment is
calculated per ton of goods carried. The owner pays voyage expenses.
• Time charter - contract to charter a vessel over a fixed period of time at a set daily rate. Under time charters, the
charterer pays voyage expenses.
• Pool charter - a time charter with a floating charter rate. The actual charter hire the pool vessel receives is its
corresponding share of all the income generated by all vessels in the pool.
• Bareboat Charter - contract to hire an empty ship, with all operating costs covered by the charterer. CGT - Compensated Gross Tonnes - International unit of measure that facilitates the comparison of different shipyards’
production regardless of the types of vessel produced. The CGT of a ship is calculated using a table of conversion factors
published by OECD. The conversion factors vary with ship type.
Classification Society - any organization that certifies seagoing vessels and their equipment for compliance with
standardized rules regarding construction and maintenance and carries out surveys at regular intervals of time and acts on
behalf of the flag state's maritime authorities.
Clarkson’s newbuilding price - The data reported represents the selection of ships covered by the Broker Clarksons.
The Ship Price Index of Clarkson’s historical data covers various sizes of the standard shiptypes. The Index only presents
anticipated prices (ex ante) not effective prices (ex post). The methodology used by the brokers is based on confirmed
contracts where they exist and brokers estimations for ship types where no transactions were registered. It should be also
noted that the sizes per ship category have increased over time and that this creates as an “inbred inflation”. Therefore only
the trends should be considered as meaningful.
Deliveries - volume of completed ships.
Demolition – See ship breaking.
Dry dock - a facility for taking a ship out of water, an operation also know as “stemming” a ship. A drydock is normally
either a graving dock (a permanent civil engineering structure) or a floating dock.
DWT – deadweight tonnes, roughly equivalent to a ships carrying capacity measured in metric tonnes.
Freight rate - the charge made for the transportation of freight.
Flag of convenience (FOC) - term used about countries allowing unlimited registration of foreign-owned ships in order
to achieve low wage levels and low or no taxation payable to the flag state.
GT – Gross Ton; unit of 100 cubic feet or 2.831 cubic meters, used in arriving at the calculation of gross tonnage.
Hot rolled plate – steel plates of the type purchased for building the hull of the ships and other heavy constructions.
Hull - the body of a vessel, a steel structure not including any equipment and machinery.
IHS Fairplay (former Lloyd’s Register-Fairplay) – supplier of maritime data, including shipbuilding statistics. The definition
of the ships taken into account in the statistics of IHS Fairplay is commercial, seagoing vessels, self propelled and of more than
100 GT. The coverage of the mega-yachts in the database is not homogenous due to the fact that registration/classification
is not mandatory for a non commercial (private) use. Finally this definition excludes naval ships.
IMO – International Maritime Organization, the maritime authority of UN tasked with the coordination of international
maritime safety and related practices.
Keel - the backbone of a ship formed from a series of connected plates running fore and aft on the bottom of the centre
line of the ship.
Knot - unit for measuring speed, equal to one nautical mile per hour or 1.852 km/h.
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Lay-Up - temporary cessation of trading of a ship by its owner i.e. during a period when there is a surplus of ships (or over-
tonnage) in relation to the level of available cargoes.
Liner - A vessel, usually containership advertising sailings on a specified trade route on a regular basis
Merchant shipbuilding – building of commercial vessels
New Order – announcement and confirmation of a firm newbuilding contract
Orderbook – the vessels on the shipyards’ books between the new order and delivery stages.
Owner – in the maritime context, the owner of a ship, or shipowner.
Ship delivery – handover of a vessel by the yard to the owner after the completing the construction
Ship Types – by segments or main shiptypes used in SEA EUROPE Market Monitoring Report:
1. Mass segments - refers to standard vessels characterized by large market volumes, series production, standardization,
limited engineering content and a more limited number of subcontractors. Typical vessels:
Bulk carriers – all vessels constructed and equipped to transport dry, homogeneous, unpacked cargo in its holds, for
example Iron ore, limestone, grain, coal, fertilizers.
Containerships - ships equipped with container cells for the purpose of transporting cargo.
Oil Tankers - ships fitted with tanks to carry carrying either crude oil or oil derivatives.
2. Niche segments – refers to complex vessels characterized by smaller market volumes, small series with less repetition
and more prototypes and sister ships, tailor-made production, substantial engineering content, knowledge-based production and a relatively large number of subcontractors. Typical vessels:
Chemical tankers – ships designed to carry relatively small parcels of higher value chemicals, such as acids or
polymers or cargos such as wine, molasses and similar products. Some chemical tankers are equipped with stainless
steel tanks and may carry different cargoes simultaneously, with each tank having its own pump and pipeline system for
loading and unloading.
Gas Carriers or Gas Tankers – vessels specially constructed to carry gasses in tanks:
• LNG tankers - carry liquid methane in refrigerated tanks at normal atmospheric pressure
• LPG tankers - carry butane, propane etc in pressurised tanks at ambient temperature.
General Cargo ships – include a large number of specialized vessels designed to carry special, heterogeneous cargoes,
including but not limited to:
• Feeder Vessels - short–sea vessels which transfers cargo between a hub port and smaller ports.
• Multipurpose ships – vessels that carry containers together with other cargo.
• Reefers - vessels designed to carry goods requiring refrigeration.
• Timber carriers, Pallet carriers, Car carriers, Cattle carriers etc
Other Non Cargo Carrying Vessels include but are not limited to:
• AHT –Anchor Handling Tug, vessels employed in the offshore activities moving anchors and performing towing
operations. AHT with combined characteristics of supply vessels is an AHTS.
• OSV - Offshore service vessels or offshore support vessel - terms for specialized vessels used in activities connected
to the exploration, development and production of oil and gas at sea.
• Special-purpose vessels – vessels not used for transport but designed to perform specific tasks (e.g. dredgers, tugs,
pilot boats, pollution control boats, rescue boats, cable or pipe layers, research or seismic vessels, survey vessels,
ice breakers, fishing vessels etc)
• Tugs - a small vessel equipped with powerful diesel engines to tow or push large ships or barges
Passenger Ships:
• Cruise ship - passenger vessel carrying passengers on trips between various ports, normally with the same starting
and ending port with high standards of accommodation and recreation.
• Ferry – vessel used to transport passengers or/and goods across a body of water in short periods of time. The
market divides into three main groups: Roll-on-roll-off (roro) ferries - tend to be large ships, often operating on
relatively short routes such as across the English Channel or the between Greek islands; Cruise-ferries - offer a
higher standard of passenger accommodation for longer routes and some of the facilities offered by cruise ships;
Fast ferries that tend to be smaller, may have multiple hulls (catamarans) and are often built from aluminium rather
than steel.
Shipbuilding Area – geographical area with a high concentration of shipbuilding activities
Shipbuilding - the construction of a vessel including the installation of machinery and equipment.
Ship Maintenance, Repairing and Conversion - any repair of a vessel including, but not restricted to, alterations,
conversions, installations, cleaning, painting, and maintenance work.
Ship breaking - breaking down of a vessel's structure for the purpose of scrapping the vessel, including the removal of gear,
equipment or any component part of a vessel. Also referred to as demolition or recycling.
TEU – Twenty Foot Equivalent Unit, a measurement of cargo-carrying capacity of a containership.
Ton–Mile - measure used in the economics of transportation to designate one ton being moved one
For the purpose of this report, SEA Europe processes data from professional data service provides. Please pay attention to the indicated data
source. Often SEA Europe Member Associations note considerable difference in comparison to national statistics, which may relate to the
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specific methodology applied. SEA Europe reports all external data as received from the author without any modifications. The data reported
at national level e.g. by national statistical offices will be reflected in our Annual Report.
Notes
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