Anxiety of Chicken game
World shipbuilding industry could get into the game of chicken following semiconductor industry, according to an agency’s prospect. In the period of last shipbuilding boom and even until recently, many countries, especially South Korea and China had competitively expanded their shipbuilding capacity. But they are now facing a severe order drought and they are highly likely to experience a struggle for existence in the coming years. On March 22nd, Korea Investors Service expressed worries in a report titled “Advance Payment in Headwind and Change in Financial Structure”: “When their order backlog all runs out in two to three years, shipbuilders around the world may get into the game of chicken with their existence at risk.” The report said that the shipbuilding market which got into a severe slump since the latter half of last year would maintain the buyer’s market for a while due to global economic downturn, ship finance cessation and the past intensive newbuilding order boom. It said that given the irreversibility of expanded shipyard facilities and newbuilding ordering activity slacking, harsh competition and decline in ship prices seem inevitable caused by the imbalance between supply and demand. Hong Seok-June, the author of the report said, “Present situations taking place in the newbuilding market are just the beginning of the crisis. Shipbuilders need to strive more to secure ample liquidity.” He said, “Restructuring of some of small and midsize shipbuilders in South Korea and China is possible and governments need to expand financial support including shipbuilding loans increase in the short run.”
Published : March 24, 2009
2009년 3월 23일 월요일
2009년 3월 15일 일요일
Danaos moves to delay deliveries
Piraeus-based Danaos Corp is close to pushing back one third of its vessel deliveries in one of container shipping’s biggest newbuilding programmes.
Five vessels have already been delayed by up to eight months, while the New York Stock Exchange-listed company is close to finalising agreements to delay another five by between two and seven months. Senior executives at the Greek container vessel-owning company said the moves were instigated at the behest of beleaguered charterers rather than purely as a matter of its own strategy. “It is the charter that comes back to us and we have to accommodate them within the shipbuilders’ schedule,” said chief financial officer Dimitri Andritsoyiannis in a conference call with analysts. “We will continue to do so,” he added, signalling likely further discussions over additional ships in the 30-vessel forward construction programme. But the company said it was not being pressed to cancel particular newbuildings or drop charter rates. “So far we have not had any indication of pressure for this,” said chief executive John Coustas. The disclosures came as Danaos reported stable earnings for last year and announced it was axing dividend payments to bolster its balance sheet. The company posted a net profit of $23.8m for the fourth quarter, which after excluding a non-recurring insurance expense mirrored its $25.5m profit for the same three months of 2007. Danaos posted net income of $117.1m for the full year, equating on a comparable adjusted basis to a 10.7% increase on the previous year. Results were helped by the sale of five container vessels during 2008, contributing a gain of $16.9m. The delivery delays so far agreed had been negotiated in co-operation with charterers, said Danaos, and involved remaining construction payments of $422m. It claimed it was “in the final stages” of pushing back the additional five. Assuming the negotiations are successfully finalised, Danaos would expect seven deliveries this year, rather than nine as previously scheduled, nine in 2010 instead of 13, and 14 in 2011, whereas initially for that year only eight were due. The later deliveries are in general the larger vessels, ranging from 8,500 teu to 12,500 teu. All 30 remaining newbuildings are on long-term charters to what Danaos called “some of the largest and most reliable counterparties in the shipping industry”. The company recently had to find new employment for a 2,100 teu vessel because of the collapse of Senator Lines, but it said it had no further anticipated re-chartering until the second quarter of 2010. “Although the current economic situation is presenting everybody in our trade with new challenges, our chartering arrangements do not allow for unilateral modification of the prevailing terms,” Danaos underlined. Due to the recent plunge in vessel values, the company has determined it is in breach of certain financial covenants, but it said it had either obtained waivers or was in discussions to receive waivers from lenders. Danaos president and chief executive John Coustas said last year’s performance was “highly satisfactory”. As a majority owner of Danaos, with a stake of about 80%, he emphasised that the board’s decision to suspend dividends and retain cash had his strong support.
Published : March 16, 2009
Five vessels have already been delayed by up to eight months, while the New York Stock Exchange-listed company is close to finalising agreements to delay another five by between two and seven months. Senior executives at the Greek container vessel-owning company said the moves were instigated at the behest of beleaguered charterers rather than purely as a matter of its own strategy. “It is the charter that comes back to us and we have to accommodate them within the shipbuilders’ schedule,” said chief financial officer Dimitri Andritsoyiannis in a conference call with analysts. “We will continue to do so,” he added, signalling likely further discussions over additional ships in the 30-vessel forward construction programme. But the company said it was not being pressed to cancel particular newbuildings or drop charter rates. “So far we have not had any indication of pressure for this,” said chief executive John Coustas. The disclosures came as Danaos reported stable earnings for last year and announced it was axing dividend payments to bolster its balance sheet. The company posted a net profit of $23.8m for the fourth quarter, which after excluding a non-recurring insurance expense mirrored its $25.5m profit for the same three months of 2007. Danaos posted net income of $117.1m for the full year, equating on a comparable adjusted basis to a 10.7% increase on the previous year. Results were helped by the sale of five container vessels during 2008, contributing a gain of $16.9m. The delivery delays so far agreed had been negotiated in co-operation with charterers, said Danaos, and involved remaining construction payments of $422m. It claimed it was “in the final stages” of pushing back the additional five. Assuming the negotiations are successfully finalised, Danaos would expect seven deliveries this year, rather than nine as previously scheduled, nine in 2010 instead of 13, and 14 in 2011, whereas initially for that year only eight were due. The later deliveries are in general the larger vessels, ranging from 8,500 teu to 12,500 teu. All 30 remaining newbuildings are on long-term charters to what Danaos called “some of the largest and most reliable counterparties in the shipping industry”. The company recently had to find new employment for a 2,100 teu vessel because of the collapse of Senator Lines, but it said it had no further anticipated re-chartering until the second quarter of 2010. “Although the current economic situation is presenting everybody in our trade with new challenges, our chartering arrangements do not allow for unilateral modification of the prevailing terms,” Danaos underlined. Due to the recent plunge in vessel values, the company has determined it is in breach of certain financial covenants, but it said it had either obtained waivers or was in discussions to receive waivers from lenders. Danaos president and chief executive John Coustas said last year’s performance was “highly satisfactory”. As a majority owner of Danaos, with a stake of about 80%, he emphasised that the board’s decision to suspend dividends and retain cash had his strong support.
Published : March 16, 2009
2009년 2월 24일 화요일
Newbuilding Price Falling
Newbuilding Price Falling
The Clarkson Newbuilding Price Index as of February 20th recorded the lowest level of 160 points since March 2005, down 17 points (9.6%) from 177 points at the end of last year. The latest figure is down as much as 30 points (15.8%) from the peak of 190 points in August last year.Rally in newbuilding price is hardly expectable for now as shipbuilding ordering activity has almost stopped amid credit crunch, economic downturn and worries about over-supply of vessels. Furthermore, the fall in prices of raw materials such as steel plate puts pressure on the newbuilding prices as well. Fortunately, however, the prices of VLCCs and ultra-large containerships took a smaller hit and, for South Korean shipbuilders, newbuilding prices are being kept bullish in Won terms thanks to the rise in exchange rates. Nevertheless, these relatively encouraging factors are meaningless without newbuilding orders being placed. Reported newbuilding orders to date in 2009 amount to just 18 ships and the accumulative orders since October total just 135 vessels. In CGT terms, newbuilding orders placed in the four months to January came to only 1.95m CGT, down 92.7% on the same period of a year earlier. It can be said that ordering activity in effect ceased considering the fact the average monthly shipbuilding orders since 2003 amounted to around 265 ships.
Published : February 25, 2009
The Clarkson Newbuilding Price Index as of February 20th recorded the lowest level of 160 points since March 2005, down 17 points (9.6%) from 177 points at the end of last year. The latest figure is down as much as 30 points (15.8%) from the peak of 190 points in August last year.Rally in newbuilding price is hardly expectable for now as shipbuilding ordering activity has almost stopped amid credit crunch, economic downturn and worries about over-supply of vessels. Furthermore, the fall in prices of raw materials such as steel plate puts pressure on the newbuilding prices as well. Fortunately, however, the prices of VLCCs and ultra-large containerships took a smaller hit and, for South Korean shipbuilders, newbuilding prices are being kept bullish in Won terms thanks to the rise in exchange rates. Nevertheless, these relatively encouraging factors are meaningless without newbuilding orders being placed. Reported newbuilding orders to date in 2009 amount to just 18 ships and the accumulative orders since October total just 135 vessels. In CGT terms, newbuilding orders placed in the four months to January came to only 1.95m CGT, down 92.7% on the same period of a year earlier. It can be said that ordering activity in effect ceased considering the fact the average monthly shipbuilding orders since 2003 amounted to around 265 ships.
Published : February 25, 2009
2009년 1월 27일 화요일
News / January 28, 2009
Berlian Laju may buy LNG carrier and tankers
Indonesia’s Berlian Laju Tanker (BLT) could splash $280m on buying one LNG carrier and four chemical tankers this year.
Financial chief Kevin Wong told Investor Daily Indonesia that the owner would raise its debt levels and use internal cash reserves to fund the acquisitions. The move comes two months after it was reported that BLT was poised to sell three more of its chemical tankers in an effort to raise cash to pay the remaining $186m of a $250m bridge loan that was due on 19 December. Sources close to the company said a $160m sale-and-leaseback deal was imminent. The company has four LPG carriers and four chemical tankers on order in Japan for delivery from this year until 2012.
Indonesia’s Berlian Laju Tanker (BLT) could splash $280m on buying one LNG carrier and four chemical tankers this year.
Financial chief Kevin Wong told Investor Daily Indonesia that the owner would raise its debt levels and use internal cash reserves to fund the acquisitions. The move comes two months after it was reported that BLT was poised to sell three more of its chemical tankers in an effort to raise cash to pay the remaining $186m of a $250m bridge loan that was due on 19 December. Sources close to the company said a $160m sale-and-leaseback deal was imminent. The company has four LPG carriers and four chemical tankers on order in Japan for delivery from this year until 2012.
2009년 1월 18일 일요일
NEWS / January 19, 2009
New icebreaker needed in the Great Lakes
Great Lakes lawmakers are hoping that another icebreaker can be added into any kind of infrastructure rebuilding plan that comes out of Congress.
Congresswoman Candice Miller (R-MI) recently joined her Senate and House colleagues of the Great Lakes region in urging Admiral Thad Allen of the United States Coast Guard to increase icebreaking capabilities in the Great Lakes. "The ability of watercraft to transit the Great Lakes during winter months is imperative to keeping commerce moving and protecting jobs in Great Lakes states. The flow of cargo through our waterways far exceeds a billion dollars during the winter months. Frozen waterways which disrupt or delay cargo can have a detrimental impact on our economy and cause further job loss. Not only are our waterways necessary for our economy, but search and rescue and flood prevention are impaired if we fail to restore water flow to ice clogged rivers," Miller said. Ice coverage of the Great Lakes varies in severity each winter, but in a typical year ice covers over half of Lake HuronÕs surface. There are currently eight Coast Guard vessels stationed in the Great Lakes available for ice-breaking duties. Only one vessel conducts ice breaking in the St. Clair River, Lake St. Clair and the Detroit River which are vital to the Southeast Michigan region. Many times there are simply not enough vessels to cover the ice clogged areas. In addition to the difficulty blocked water-ways causes for commerce and transportation, the lack of a Coast Guard ice-capable vessel in Lake Ontario leaves the northern maritime border vulnerable. "While the 225-foot Hollyhock stationed in Port Huron is one of the newest additions to the fleet, it can only be in one place at a time and already has a huge amount of territory to cover." Miller continued, "I believe that more must be done in order to ensure adequate ice breaking capacity in the Great Lakes, and urge the Coast Guard to address this urgent need by purchasing new vessels and deploying them as quickly as possible to the Great Lakes. Congress should also mandate additional funding for this effort in the upcoming economic stimulus package."
Great Lakes lawmakers are hoping that another icebreaker can be added into any kind of infrastructure rebuilding plan that comes out of Congress.
Congresswoman Candice Miller (R-MI) recently joined her Senate and House colleagues of the Great Lakes region in urging Admiral Thad Allen of the United States Coast Guard to increase icebreaking capabilities in the Great Lakes. "The ability of watercraft to transit the Great Lakes during winter months is imperative to keeping commerce moving and protecting jobs in Great Lakes states. The flow of cargo through our waterways far exceeds a billion dollars during the winter months. Frozen waterways which disrupt or delay cargo can have a detrimental impact on our economy and cause further job loss. Not only are our waterways necessary for our economy, but search and rescue and flood prevention are impaired if we fail to restore water flow to ice clogged rivers," Miller said. Ice coverage of the Great Lakes varies in severity each winter, but in a typical year ice covers over half of Lake HuronÕs surface. There are currently eight Coast Guard vessels stationed in the Great Lakes available for ice-breaking duties. Only one vessel conducts ice breaking in the St. Clair River, Lake St. Clair and the Detroit River which are vital to the Southeast Michigan region. Many times there are simply not enough vessels to cover the ice clogged areas. In addition to the difficulty blocked water-ways causes for commerce and transportation, the lack of a Coast Guard ice-capable vessel in Lake Ontario leaves the northern maritime border vulnerable. "While the 225-foot Hollyhock stationed in Port Huron is one of the newest additions to the fleet, it can only be in one place at a time and already has a huge amount of territory to cover." Miller continued, "I believe that more must be done in order to ensure adequate ice breaking capacity in the Great Lakes, and urge the Coast Guard to address this urgent need by purchasing new vessels and deploying them as quickly as possible to the Great Lakes. Congress should also mandate additional funding for this effort in the upcoming economic stimulus package."
2009년 1월 15일 목요일
News / January 16, 2009
Newbuilding orders may fall 40% in China
Newbuilding orders at Chinese shipyards will slump 40% this year derailing its efforts to become the world’s number one shipbuilder, a top Asian bank claims. Dwindling demand for bulk carriers following a crash in the sector’s earnings will account for the majority of the shortfall, BOC International says.
Cancellations at China State Shipbuilding Co, which has an orderbook dominated by bulk carriers, will also hit China’s market share, according to a note from the investment bank. China’s share of the shipbuilding market slipped to 36% in the first 10 months of 2008. A year earlier its slice was at 42%. Conversely, South Korea’s portion was lifted by nearly a tenth to 46% over the same timeframe. China has stated it wants to overtake South Korea as the dominant shipbuilder by 2015.
Big three’s investment in facilities goes on
Impression of Gunsan Shipyard of Hyundai Heavy Industries Despite global economic recession, South Korea’s major shipbuilding companies are planning to continue investment in shipyard facilities in 2009 for the improvement of productivity. Large shipbuilders with three to four year long order backlogs will continue to make massive investment in facility expansion this year following last year, seeking to ‘digest’ the heavy workload more smoothly. Samsung Heavy Industries plans to invest 800bn won ($579m) in shipyard facilities this year which is the same level to a year earlier. About 250bn won will be used for facility maintenance caused by depreciation and the rest will be invested in reclamation work, workshop and ship-block factory construction, etc. for the expansion of its Geoje Shipyard. With the aim of increasing shipbuilding output to 70 ships per year, Samsung is recovering land from the sea to form a site of 280,425㎡ off Geoje Shipyard and it is also planning to construct a block factory which would produce 100,000 tons of ship blocks per year once completed. Daewoo Shipbuilding & Marine Engineering plans to invest 500bn won to raise productivity. It will replace the 450t Goliath crane at its No.2 dock of which expansion work was completed in last November with a 900t Goliath crane. It will also add one more floating dock to existing three. Further, Daewoo will increase the number of its 3,600t floating cranes to two by introducing one more to largely boost productivity. It had invested just 190bn won in 2007 but it laid out 760bn won last year in the expansion work of the No.2 dock, etc. In case of Hyundai Heavy Industries, a firm business plan has not decided yet but grand scale projects are already under way such as the construction of the Gunsan Shipyard which would have the world’s longest dock (700 meters) and the world’s largest Goliath crane (1,600t) once completed, so a considerable amount of investment in facilities is expected this year as well. It had invested as much as 1.638trn won last year. An official at shipbuilding industry said, “Big three’s order backlogs stretch over more than three years and they need to enhance productivity. Unlike other industries, shipbuilding is forecast to keep investing in facilities this year too.”
Russian shipyard developing ice-class cargoships
Russian shipyard Krasnoye Sormovo is developing a new 7,600-dwt river-sea dry cargoship. The MNP-owned shipbuilder is teaming up with sister company Volga-Caspian Design Bureau to design the vessel, which will be able to carry hazardous cargo.
The ice-class ships will be classed by the Russian Maritime Register of Shipping. They will be 141.6 metres long with a 4.75 metre draft. The loaded speed will be 10.3 knots and the vessels will accommodate 12 crew.
Newbuilding orders at Chinese shipyards will slump 40% this year derailing its efforts to become the world’s number one shipbuilder, a top Asian bank claims. Dwindling demand for bulk carriers following a crash in the sector’s earnings will account for the majority of the shortfall, BOC International says.
Cancellations at China State Shipbuilding Co, which has an orderbook dominated by bulk carriers, will also hit China’s market share, according to a note from the investment bank. China’s share of the shipbuilding market slipped to 36% in the first 10 months of 2008. A year earlier its slice was at 42%. Conversely, South Korea’s portion was lifted by nearly a tenth to 46% over the same timeframe. China has stated it wants to overtake South Korea as the dominant shipbuilder by 2015.
Big three’s investment in facilities goes on
Impression of Gunsan Shipyard of Hyundai Heavy Industries Despite global economic recession, South Korea’s major shipbuilding companies are planning to continue investment in shipyard facilities in 2009 for the improvement of productivity. Large shipbuilders with three to four year long order backlogs will continue to make massive investment in facility expansion this year following last year, seeking to ‘digest’ the heavy workload more smoothly. Samsung Heavy Industries plans to invest 800bn won ($579m) in shipyard facilities this year which is the same level to a year earlier. About 250bn won will be used for facility maintenance caused by depreciation and the rest will be invested in reclamation work, workshop and ship-block factory construction, etc. for the expansion of its Geoje Shipyard. With the aim of increasing shipbuilding output to 70 ships per year, Samsung is recovering land from the sea to form a site of 280,425㎡ off Geoje Shipyard and it is also planning to construct a block factory which would produce 100,000 tons of ship blocks per year once completed. Daewoo Shipbuilding & Marine Engineering plans to invest 500bn won to raise productivity. It will replace the 450t Goliath crane at its No.2 dock of which expansion work was completed in last November with a 900t Goliath crane. It will also add one more floating dock to existing three. Further, Daewoo will increase the number of its 3,600t floating cranes to two by introducing one more to largely boost productivity. It had invested just 190bn won in 2007 but it laid out 760bn won last year in the expansion work of the No.2 dock, etc. In case of Hyundai Heavy Industries, a firm business plan has not decided yet but grand scale projects are already under way such as the construction of the Gunsan Shipyard which would have the world’s longest dock (700 meters) and the world’s largest Goliath crane (1,600t) once completed, so a considerable amount of investment in facilities is expected this year as well. It had invested as much as 1.638trn won last year. An official at shipbuilding industry said, “Big three’s order backlogs stretch over more than three years and they need to enhance productivity. Unlike other industries, shipbuilding is forecast to keep investing in facilities this year too.”
Russian shipyard developing ice-class cargoships
Russian shipyard Krasnoye Sormovo is developing a new 7,600-dwt river-sea dry cargoship. The MNP-owned shipbuilder is teaming up with sister company Volga-Caspian Design Bureau to design the vessel, which will be able to carry hazardous cargo.
The ice-class ships will be classed by the Russian Maritime Register of Shipping. They will be 141.6 metres long with a 4.75 metre draft. The loaded speed will be 10.3 knots and the vessels will accommodate 12 crew.
2009년 1월 11일 일요일
NEWS / January 12, 2009
Urging of review on restructuring
A governor in a South Korean province strongly opposed the plan of restructuring of small and medium sized shipbuilders, saying it is absolutely disadvantageous to the newly-built shipyards located at the province. On January 11th, Park Joon-yung, the governor of South Jeolla Province, situated in the southwest part of South Korea,
issued a statement on current restructuring process led by government and financial industry and said the reshuffling standards set by financial agencies are seriously unfavorable to the newly-established shipyards in the province and strongly urged reappraisal. He argued that restructuring of s- & m-sized shipbuilders should take place by analyzing the future potential of them, not by the logic of financial industry. South Jeolla Province stressed that s- & m-sized shipbuilding industry had been chosen as government’s strategic business in 2004 and it should be re-examined whether liquidating those smaller shipbuilders would be desirable at a time when they are about to start their business. Besides, the province announced that it is opposed to the ‘same standard’ restructuring on construction and shipbuilding industries as a whole because shipbuilding business provides a great deal of jobs and it is a large-scale export industry. The Korea Federation of Banks recently embarked on restructuring by setting appraisal criteria for ailing s- & m-sized shipbuilders such as ‘experience of newbuilding delivery’, ‘shipyard facilities’, ‘the rate of RG securement’, etc. The shipyards whose line of credit to a main creditor is over 5 billion won ($3.745 million) should have their credit risk evaluated. If restructuring is carried out according to the current standards, shipbuilding industry in South Jeolla Province where most of the shipbuilding companies are ‘green field’ shipyards would likely face forced restructuring. Of some 12 s- & m-sized shipbuilders in the province, some 10 companies would be categorized in the ‘restructuring group’ according to the current standards set by financial industry. Four of them have not delivered a single newbuilding yet, and seven are now constructing docks which are necessary for shipbuilding. It remains unclear, however, whether the province’s urging would be reflected in the current restructuring plan as government’s will for restructuring of shipbuilding and construction industries is so firm.
Hyundai to build new frigates
Hyundai Heavy Industries has been awarded a contract to build the lead ship of the South Korean Navys new 2,300 ton-class frigates to begin service in 2011, a military source said recently.
The Defense Acquisition Program Administration (DAPA) signed the contract worth about 140 billion won Dec. 26 with Hyundai, which had been in charge of the basic design of the state-of-the-art frigate codenamed FFX, said the source. FFX ships will replace the older Ulsan class frigates and Donghae/Pohang class corvettes by 2020, according to the Navy.The first six FFX ships are to be built by 2015 to replace the current nine Ulsan class frigates in service. The lead ship of the Ulsan class was commissioned in 1981.
Clarkson downgraded boxship market
Recently released data from Clarkson research institution revealed, despite the global financial crisis, the containership trading volume will still show growing tendency in 2009.However, it was warned that the massive volume of shipping capacity scheduled to be delivered in 2009 will cut the container ship rental price. Clarkson research institution again anticipated the growth of 2009 global container ship trading volume, and downgrade movement of the 2009 growth rate to about 6.7% when considered the global trading volume will still be affected by credit crunch. It is reported that the current biggest issue is the overcapacity from the massive order backlogs. The growth rate for the 2008 containership shipping capacity stood at 12.6% approximately, and 12.7% was expected for 2009. The difference between supply and demand is about 6% which will drop the freight rates of some major routes and container ship rental price.
A governor in a South Korean province strongly opposed the plan of restructuring of small and medium sized shipbuilders, saying it is absolutely disadvantageous to the newly-built shipyards located at the province. On January 11th, Park Joon-yung, the governor of South Jeolla Province, situated in the southwest part of South Korea,
issued a statement on current restructuring process led by government and financial industry and said the reshuffling standards set by financial agencies are seriously unfavorable to the newly-established shipyards in the province and strongly urged reappraisal. He argued that restructuring of s- & m-sized shipbuilders should take place by analyzing the future potential of them, not by the logic of financial industry. South Jeolla Province stressed that s- & m-sized shipbuilding industry had been chosen as government’s strategic business in 2004 and it should be re-examined whether liquidating those smaller shipbuilders would be desirable at a time when they are about to start their business. Besides, the province announced that it is opposed to the ‘same standard’ restructuring on construction and shipbuilding industries as a whole because shipbuilding business provides a great deal of jobs and it is a large-scale export industry. The Korea Federation of Banks recently embarked on restructuring by setting appraisal criteria for ailing s- & m-sized shipbuilders such as ‘experience of newbuilding delivery’, ‘shipyard facilities’, ‘the rate of RG securement’, etc. The shipyards whose line of credit to a main creditor is over 5 billion won ($3.745 million) should have their credit risk evaluated. If restructuring is carried out according to the current standards, shipbuilding industry in South Jeolla Province where most of the shipbuilding companies are ‘green field’ shipyards would likely face forced restructuring. Of some 12 s- & m-sized shipbuilders in the province, some 10 companies would be categorized in the ‘restructuring group’ according to the current standards set by financial industry. Four of them have not delivered a single newbuilding yet, and seven are now constructing docks which are necessary for shipbuilding. It remains unclear, however, whether the province’s urging would be reflected in the current restructuring plan as government’s will for restructuring of shipbuilding and construction industries is so firm.
Hyundai to build new frigates
Hyundai Heavy Industries has been awarded a contract to build the lead ship of the South Korean Navys new 2,300 ton-class frigates to begin service in 2011, a military source said recently.
The Defense Acquisition Program Administration (DAPA) signed the contract worth about 140 billion won Dec. 26 with Hyundai, which had been in charge of the basic design of the state-of-the-art frigate codenamed FFX, said the source. FFX ships will replace the older Ulsan class frigates and Donghae/Pohang class corvettes by 2020, according to the Navy.The first six FFX ships are to be built by 2015 to replace the current nine Ulsan class frigates in service. The lead ship of the Ulsan class was commissioned in 1981.
Clarkson downgraded boxship market
Recently released data from Clarkson research institution revealed, despite the global financial crisis, the containership trading volume will still show growing tendency in 2009.However, it was warned that the massive volume of shipping capacity scheduled to be delivered in 2009 will cut the container ship rental price. Clarkson research institution again anticipated the growth of 2009 global container ship trading volume, and downgrade movement of the 2009 growth rate to about 6.7% when considered the global trading volume will still be affected by credit crunch. It is reported that the current biggest issue is the overcapacity from the massive order backlogs. The growth rate for the 2008 containership shipping capacity stood at 12.6% approximately, and 12.7% was expected for 2009. The difference between supply and demand is about 6% which will drop the freight rates of some major routes and container ship rental price.
2009년 1월 6일 화요일
NEWS / January 7, 2009
Highest production amid slump
South Korean large shipbuilders are expected to deliver over 500 ships this year, the highest figure ever. According to Korea Shipbuilders’ Association (Koshipa), its nine member companies, which are major shipbuilders, have completed over 400 newbuildings last year and they would turn over more than 500 ships to shipowners for the first time in 2009.
The nine shipbuilders’ output accounts for 90% of the total ship production in Korea and they handed over a total of 407 vessels in 2008, up around 20% from 340 units in 2007. Last year, Hyundai Heavy Industries (HHI) delivered over 100 vessels for the first time. Other major shipbuilders such as Samsung Heavy Industries (SHI), Daewoo Shipbuilding & Marine Engineering (DSME), STX Shipbuilding and Hanjin Heavy Industries & Construction (HHIC), etc also have expanded their output. In 2009, the output growth rate is expected to increase with the nine shipbuilders planning to hand over 522 newbuildings, up around 30% against 2008. Newbuilding order boom since 2004 and shipbuilders’ expansion of building capacity contributed to the increase in shipbuilding output. As for HHI, its FPSO-exclusive dock is set to be completed within this month and its new yard Gunsan Shipyard is scheduled to launch the first ship in November this year. Also, SHI’s No. 3 floating dock starts operation this month and DSME has completed the expansion of its No. 2 dock in November last year. In 2009, HHI plans to deliver 119 ships (102 in 2008), SHI 63 ships (53 in 2008), DSME 75 ships (55 in 2008), HHIC 35 ships (20 in 2008). Hyundai Samho Heavy Industries aims to hand over 40 ships this year (35 in 2008) and Hyundai Mipo Dockyard 72 ships (70 in 2008).
Hyundai completes 102 vessels
World Top spot Hyundai Heavy Industries (HHI) announced that its newbuilding completions in 2008 reached a total of 102 units, up 22 ships from 2007. The record is a world first for any major shipyard. Since 1974, HHI has completed a total of 1,505 ships for 237 shipowners in 44 countries across the world. Cumulative totals for completion volume were 100 ships as of 1979, 200 as of 1983, 500 as of 1992 and 1,000 as of 2003. HHI expects to complete 119 ships in 2009. With HHI receiving no orders in both October and November, the company's total orders received for January-November 2008 stood at 110 ships aggregating 10.01 million grt and $13.6 billion in value, unchanged from the earlier reported performance for January-September 2008. The 110 ships consist of 37 tankers, 35 containerships, eight LPG carriers, 23 bulkers, two drillships, one special ship and four others. In its total order book, HHI now has a total of 362 ships of 31.3 million grt valued at $34.8 billion. The 362 ships consist of 114 tankers, 155 containerships, four LNG carriers, 30 LPG carriers, 38 bulkers, three drillships, 10 special ships and eight others.
South Korean large shipbuilders are expected to deliver over 500 ships this year, the highest figure ever. According to Korea Shipbuilders’ Association (Koshipa), its nine member companies, which are major shipbuilders, have completed over 400 newbuildings last year and they would turn over more than 500 ships to shipowners for the first time in 2009.
The nine shipbuilders’ output accounts for 90% of the total ship production in Korea and they handed over a total of 407 vessels in 2008, up around 20% from 340 units in 2007. Last year, Hyundai Heavy Industries (HHI) delivered over 100 vessels for the first time. Other major shipbuilders such as Samsung Heavy Industries (SHI), Daewoo Shipbuilding & Marine Engineering (DSME), STX Shipbuilding and Hanjin Heavy Industries & Construction (HHIC), etc also have expanded their output. In 2009, the output growth rate is expected to increase with the nine shipbuilders planning to hand over 522 newbuildings, up around 30% against 2008. Newbuilding order boom since 2004 and shipbuilders’ expansion of building capacity contributed to the increase in shipbuilding output. As for HHI, its FPSO-exclusive dock is set to be completed within this month and its new yard Gunsan Shipyard is scheduled to launch the first ship in November this year. Also, SHI’s No. 3 floating dock starts operation this month and DSME has completed the expansion of its No. 2 dock in November last year. In 2009, HHI plans to deliver 119 ships (102 in 2008), SHI 63 ships (53 in 2008), DSME 75 ships (55 in 2008), HHIC 35 ships (20 in 2008). Hyundai Samho Heavy Industries aims to hand over 40 ships this year (35 in 2008) and Hyundai Mipo Dockyard 72 ships (70 in 2008).
Hyundai completes 102 vessels
World Top spot Hyundai Heavy Industries (HHI) announced that its newbuilding completions in 2008 reached a total of 102 units, up 22 ships from 2007. The record is a world first for any major shipyard. Since 1974, HHI has completed a total of 1,505 ships for 237 shipowners in 44 countries across the world. Cumulative totals for completion volume were 100 ships as of 1979, 200 as of 1983, 500 as of 1992 and 1,000 as of 2003. HHI expects to complete 119 ships in 2009. With HHI receiving no orders in both October and November, the company's total orders received for January-November 2008 stood at 110 ships aggregating 10.01 million grt and $13.6 billion in value, unchanged from the earlier reported performance for January-September 2008. The 110 ships consist of 37 tankers, 35 containerships, eight LPG carriers, 23 bulkers, two drillships, one special ship and four others. In its total order book, HHI now has a total of 362 ships of 31.3 million grt valued at $34.8 billion. The 362 ships consist of 114 tankers, 155 containerships, four LNG carriers, 30 LPG carriers, 38 bulkers, three drillships, 10 special ships and eight others.
2009년 1월 5일 월요일
NEWS / January 6, 2009
“Innovation & Challenge”
While newbuilding order drought is expected to continue in 2009, chief executives of South Korean major shipbuilders selected “Innovation and Challenge” as the management key words of this year.
Although the market is showing a severe slump, CEOs plan to convert this crisis into an opportunity with the spirit of challenge peculiar to Korean enterprises, business process innovation, cost reduction and new technology development such as ice-class ships.
Hyundai Heavy Industries President Choi Kil-seon stressed that management innovation is what should be done first. He laid emphasis on three things: improvement of ‘high cost’ structure / preparing countermeasures against fluctuations in foreign exchange rates and raw material prices / refrainment from unnecessary investment and preoccupation of new business opportunity.
HHI Vice Chairman Min Keh-sik demanded inefficient business routines be innovated and said radical reform is required as profitability in all business sectors is expected to sharply deteriorate in 2009.
Samsung Heavy Industries, the only shipbuilder which over-achieved the self-set order target last year among major shipbuilders, advocates “Creative Innovation and Challenge” as its 2009 management slogan. It plans to focus on three tasks: cost reduction / new technology development such as ice-class ship and wind power generating equipment / client satisfaction through security and quality improvement.
SHI President Kim Jing-wan said cost reduction is the utmost priority and SHI needs to preserve the market share in offshore sector such as drillship and LNG-FPSO while making inroads into ‘future’ businesses.
Daewoo Shipbuilding & Marine Engineering, although the negotiations are having a hard going regarding the sale of a 50.4% stake in it to Hanwha Group, it plans to achieve KRW13trn (USD9.8bn) of revenue this year and set its 2009 order target at more than $10bn for the fourth consecutive year.
DSME also aims to gain a dominant position in drillship and FPSO sectors after it has already attained superiority in LNG carrier and VLCC markets and plans to develop new technology such as ice-class ships.
STX Group placed emphasis on ‘aggressive foreign market exploitation’ and ‘strengthening the growth potential’, advocating “Challenge” as its 2009 management key word.
STX Chairman Kang Duk-soo particularly highlighted four sectors: offshore plant business such as drillship and FPSO / LNG carrier construction and LNG shipment / industrial plants such as power plant and oil refinery / development of energy resources.
South Korean shipbuilders are now leading the world shipbuilding industry but in order to change the current crisis into an opportunity, they need to face the newbuilding order slump with daring strategies.
Meanwhile, shipbuilders have usually announced their order target at the beginning of a new year but no shipbuilder has revealed its aim yet except DSME this year. Despite “Innovation and Challenge”, shipbuilding industry is forecast to face rough going in 2009.
QBSHI started construction for cruiseship building base
Junuary 2, 2009, according to municipal government of Yinghai town in Jiaozhou city, the construction of cruiseship building base of Qingdao Beihai Shipbuilding Heavy Industry will begin officially in Yinghai town industrial park with a total investment of CNY 50m (about USD 6.25m).
It is reported that the construction of the base will be completed by August 2010, the 1st construction cite will be about 4,000 square meters.
It will mainly produce cruiseships and shipbuilding equipments, the annual output value will amount to CNY 100m (about USD12.5m).
The 2nd construction is scheduled to be completed by the 2010 year-end, the annual output value will total CNY 300m (about USD 37.5m).
When entering into operation after the completion of the construction of shipbuilding base, it will resolve the employment problem for about 400 people in the local area and the imaginable income and tax revenue will aggregate CNY 30m (about USD 3.75m).
Qingdao delivered three vessels in 5 days
Qingdao Shipyard delivered a vessel each to China Communications Construction Company, China Petroleum Ocean Enineering, and China Oilfield Services Limited within 5 days of 2008 year-end.
Qingdao Shipyard has been approaching harmonious development of old and new plant areas, production, construction, and relocation while carrying out its development strategy, ‘relocation, reshuffling, and collaboration’.
It will try to open up international market by mainly developing large and medium military vessels, marine engineering vessels, and special liquefied gas carriers with constructing a shipbuilding base for special ships.
While newbuilding order drought is expected to continue in 2009, chief executives of South Korean major shipbuilders selected “Innovation and Challenge” as the management key words of this year.
Although the market is showing a severe slump, CEOs plan to convert this crisis into an opportunity with the spirit of challenge peculiar to Korean enterprises, business process innovation, cost reduction and new technology development such as ice-class ships.
Hyundai Heavy Industries President Choi Kil-seon stressed that management innovation is what should be done first. He laid emphasis on three things: improvement of ‘high cost’ structure / preparing countermeasures against fluctuations in foreign exchange rates and raw material prices / refrainment from unnecessary investment and preoccupation of new business opportunity.
HHI Vice Chairman Min Keh-sik demanded inefficient business routines be innovated and said radical reform is required as profitability in all business sectors is expected to sharply deteriorate in 2009.
Samsung Heavy Industries, the only shipbuilder which over-achieved the self-set order target last year among major shipbuilders, advocates “Creative Innovation and Challenge” as its 2009 management slogan. It plans to focus on three tasks: cost reduction / new technology development such as ice-class ship and wind power generating equipment / client satisfaction through security and quality improvement.
SHI President Kim Jing-wan said cost reduction is the utmost priority and SHI needs to preserve the market share in offshore sector such as drillship and LNG-FPSO while making inroads into ‘future’ businesses.
Daewoo Shipbuilding & Marine Engineering, although the negotiations are having a hard going regarding the sale of a 50.4% stake in it to Hanwha Group, it plans to achieve KRW13trn (USD9.8bn) of revenue this year and set its 2009 order target at more than $10bn for the fourth consecutive year.
DSME also aims to gain a dominant position in drillship and FPSO sectors after it has already attained superiority in LNG carrier and VLCC markets and plans to develop new technology such as ice-class ships.
STX Group placed emphasis on ‘aggressive foreign market exploitation’ and ‘strengthening the growth potential’, advocating “Challenge” as its 2009 management key word.
STX Chairman Kang Duk-soo particularly highlighted four sectors: offshore plant business such as drillship and FPSO / LNG carrier construction and LNG shipment / industrial plants such as power plant and oil refinery / development of energy resources.
South Korean shipbuilders are now leading the world shipbuilding industry but in order to change the current crisis into an opportunity, they need to face the newbuilding order slump with daring strategies.
Meanwhile, shipbuilders have usually announced their order target at the beginning of a new year but no shipbuilder has revealed its aim yet except DSME this year. Despite “Innovation and Challenge”, shipbuilding industry is forecast to face rough going in 2009.
QBSHI started construction for cruiseship building base
Junuary 2, 2009, according to municipal government of Yinghai town in Jiaozhou city, the construction of cruiseship building base of Qingdao Beihai Shipbuilding Heavy Industry will begin officially in Yinghai town industrial park with a total investment of CNY 50m (about USD 6.25m).
It is reported that the construction of the base will be completed by August 2010, the 1st construction cite will be about 4,000 square meters.
It will mainly produce cruiseships and shipbuilding equipments, the annual output value will amount to CNY 100m (about USD12.5m).
The 2nd construction is scheduled to be completed by the 2010 year-end, the annual output value will total CNY 300m (about USD 37.5m).
When entering into operation after the completion of the construction of shipbuilding base, it will resolve the employment problem for about 400 people in the local area and the imaginable income and tax revenue will aggregate CNY 30m (about USD 3.75m).
Qingdao delivered three vessels in 5 days
Qingdao Shipyard delivered a vessel each to China Communications Construction Company, China Petroleum Ocean Enineering, and China Oilfield Services Limited within 5 days of 2008 year-end.
Qingdao Shipyard has been approaching harmonious development of old and new plant areas, production, construction, and relocation while carrying out its development strategy, ‘relocation, reshuffling, and collaboration’.
It will try to open up international market by mainly developing large and medium military vessels, marine engineering vessels, and special liquefied gas carriers with constructing a shipbuilding base for special ships.
2008년 12월 29일 월요일
NEWS / December 30, 2008
Hyundai, revenue rose 26%
Hyundai Heavy Industries has overcome a drop in ship orders as revenue jumped by a quarter in the first 11 months of 2008. The World’s largest shipbuilder says newbuilding contracts fell by 7.4% but higher prices pushed the value of deals up. Seoul-listed HHI booked orders worth $26.20bn between January and November 2008, up 12% on the figure recorded a year ago. Revenue for the period rose 26% to $14.07bn, with November sales up 44% to $1.70bn. Hyundai had failed to book a single newbuilding in October. Only construction equipment and electronics orders kept figures ticking over as HHI's orders plunged 57% year-on-year.
Argentina record order
Trans Ona is set to place an order Monday for a handysize tanker at Argentina's Rio Santiago Shipyard (ARS).
Rio Santiago Shipyard The compatriot tanker and towage player will sign a letter of intention for the 16,000-gt unit and an option for another, according to the Buenos Aires provincial government, which owns the yard. Details of the tanker order, including the price tag, have not been released. A call to the yard went unanswered Monday. The gross tonnage would make the vessels roughly 24,000 dwt. Provincial officials, including Governor Daniel Scioli, are scheduled to attend the signing for the deal as Trans Ona takes delivery of the tug "Ona Don Lorenzo" from ARS. Buenos Aires-based Trans Ona runs a fleet of eight tugs and owns one tanker, the 35,700-dwt Ona Tridente, which ARS built in 1997. ARS, which is located in the Buenos Aires suburb of Ensenada, builds both military and merchant vessels, including bulkers, tankers, boxships and offshore supply vessels.
Minors’ crisis deteriorating in China
Although Chinese shipbuilding industry’s order cancellation has not been aggravated yet, about whether the minor private shipbuilding forces will be well-preserved after a year or two remains of concern.A large number of small private shipbuilders have been established in coastal areas in China in recent years. Media report says, up to the first half of 2008, the number of registered shipyards in Zhejiang province aggregates about 200 and they are all private shipyards. It was mentioned that the total investment in 10 shipbuilding bases by Zhejiang province on the ‘Zhejiang province shipbuilding industry distribution plan’ in December 2006 should be CNY 10.1bn. According to the local media, there are 7 shipbuilding enterprises close to the Jiangsu Jingjiang coasts, whose 2007 shipbuilding completion stood at 2.5m-dwt, nearly the half of the total completion amounts of Jiangsu province, the shipbuilding industry’s sales income went beyond CNY 30bn. According to the development plan, 4 shipbuilders’ sales income will be exceeding CNY 10bn and the total production amount in shipbuilding industry will go beyond CNY 100bn by 2012. However, small private shipyards and state-owned ineffective large state-owned shipyards are facing a very big risk due to the financial crisis. The minor shipowners and shipbuilers on vessel loans are all at great risks. It is because although the order-backlogs for the newly-rising minor private shipyard are filled until the next year or the year after, the 70% cash for the vessel the Europe shipowners were funded by a number of banks in Europe. But, due to the collapse and reconstruction of the Europe’s financial system, whether shipowners m are able to perform the contract agreement will be a doubt. If the shipowners show poor contract performance capabilities, then the down payment paid to shipyards will be insufficient either, which means the orders are likely to be withdrawn, and the market downturn will lead their not signing a new contract. When a private enterprise have no sales income or show no capability to pay back the loans, it means that they are on the brink of bankruptcy. To resolve the minor private shipbuilders difficulties, vessel mortgage loan policy is being set up currently.
Hyundai Heavy Industries has overcome a drop in ship orders as revenue jumped by a quarter in the first 11 months of 2008. The World’s largest shipbuilder says newbuilding contracts fell by 7.4% but higher prices pushed the value of deals up. Seoul-listed HHI booked orders worth $26.20bn between January and November 2008, up 12% on the figure recorded a year ago. Revenue for the period rose 26% to $14.07bn, with November sales up 44% to $1.70bn. Hyundai had failed to book a single newbuilding in October. Only construction equipment and electronics orders kept figures ticking over as HHI's orders plunged 57% year-on-year.
Argentina record order
Trans Ona is set to place an order Monday for a handysize tanker at Argentina's Rio Santiago Shipyard (ARS).
Rio Santiago Shipyard The compatriot tanker and towage player will sign a letter of intention for the 16,000-gt unit and an option for another, according to the Buenos Aires provincial government, which owns the yard. Details of the tanker order, including the price tag, have not been released. A call to the yard went unanswered Monday. The gross tonnage would make the vessels roughly 24,000 dwt. Provincial officials, including Governor Daniel Scioli, are scheduled to attend the signing for the deal as Trans Ona takes delivery of the tug "Ona Don Lorenzo" from ARS. Buenos Aires-based Trans Ona runs a fleet of eight tugs and owns one tanker, the 35,700-dwt Ona Tridente, which ARS built in 1997. ARS, which is located in the Buenos Aires suburb of Ensenada, builds both military and merchant vessels, including bulkers, tankers, boxships and offshore supply vessels.
Minors’ crisis deteriorating in China
Although Chinese shipbuilding industry’s order cancellation has not been aggravated yet, about whether the minor private shipbuilding forces will be well-preserved after a year or two remains of concern.A large number of small private shipbuilders have been established in coastal areas in China in recent years. Media report says, up to the first half of 2008, the number of registered shipyards in Zhejiang province aggregates about 200 and they are all private shipyards. It was mentioned that the total investment in 10 shipbuilding bases by Zhejiang province on the ‘Zhejiang province shipbuilding industry distribution plan’ in December 2006 should be CNY 10.1bn. According to the local media, there are 7 shipbuilding enterprises close to the Jiangsu Jingjiang coasts, whose 2007 shipbuilding completion stood at 2.5m-dwt, nearly the half of the total completion amounts of Jiangsu province, the shipbuilding industry’s sales income went beyond CNY 30bn. According to the development plan, 4 shipbuilders’ sales income will be exceeding CNY 10bn and the total production amount in shipbuilding industry will go beyond CNY 100bn by 2012. However, small private shipyards and state-owned ineffective large state-owned shipyards are facing a very big risk due to the financial crisis. The minor shipowners and shipbuilers on vessel loans are all at great risks. It is because although the order-backlogs for the newly-rising minor private shipyard are filled until the next year or the year after, the 70% cash for the vessel the Europe shipowners were funded by a number of banks in Europe. But, due to the collapse and reconstruction of the Europe’s financial system, whether shipowners m are able to perform the contract agreement will be a doubt. If the shipowners show poor contract performance capabilities, then the down payment paid to shipyards will be insufficient either, which means the orders are likely to be withdrawn, and the market downturn will lead their not signing a new contract. When a private enterprise have no sales income or show no capability to pay back the loans, it means that they are on the brink of bankruptcy. To resolve the minor private shipbuilders difficulties, vessel mortgage loan policy is being set up currently.
2008년 12월 28일 일요일
NEWS / December 29, 2008
Support & Restructuring for shipbuilders
The Blue House, the Presidential Residence of the Republic of Korea South Korean government has established a plan to revive viable smaller shipbuilders and restructure the non-viable. First of all, export insurance increases 54% next year against 2008 for shipbuilding companies facing worsening liquidity problem. But the government decided to induce restructuring of some shipbuilders resolutely. Ministry of Knowledge Economy (MKE) on December 26 released this kind of both support and restructuring plan in a 2009 business report held at the Blue House. ‘Supporting the viable’ and ‘weeding out the non-viable’ will be put forward by a task force, co-organized by MKE and Financial Services Commission. Surplus work force at smaller shipbuilders, resulted by shortage of demand, will not be dismissed and will receive business training such as attaining certificates of technology, backed up by policy. MKE said it will introduce this sort of ‘employment preservation and retraining model’ and provide part of wage and training expense together with Ministry of Labor. For the resuscitation of troubled shipbuilders, export insurance will be expanded to KRW 19.5trn (USD 14.9bn) in 2009, which is larger by KRW 6.9trn against 2008. However, non-viable shipbuilders will be restructured promptly by work-out or M&A, etc. An official at MKE said, “The work place of liquidated companies will be incited to be used as ship-block assembly factory or ship-repair yard and we will help workers at those companies to be employed by other shipbuilders.” Aside from top six to seven large shipbuilders, the government plans to induce swift restructuring for smaller shipbuilders which are non-viable by a general assessment including facility, management and technology ratings.
3 measures for advanced Chinese shipbuilding
Ministry of Industry and Information Technology (MIIT) of the People’s Republic China said on December 24, Chinese marine industry has been affected by the international financial crisis and China strives to maintain stable development of shipbuilding industry by threemeasures such as protecting order-receipts and market, encouraging the development through reshuffling, and technology improvement in order to overcome the current production and management difficulties. The official said, shipbuilding industry requires strong makeshifts as well as the long term development strategies. Firstly, major shipbuilders’ shipbuilding tasks have to be completed and delivered as scheduled and long term development of shipbuilding industry will have to be supported by the increase of newbuilding demands. Secondly, through this market adjustment period, the allocation of resources has to be optimized and distributed rationally by eliminating the outdated production capacity. Also, shipbuilders should be encouraged for alliances or M&A in order to increase industrial concentration and the efficiency of resource use. In addition, Chinese major shipbuilding bases and major shipbuilders’ specialized production and assembly of the half-finished products for industrial clustering effect. At the same time, to improve quality, we should optimize the production structure and develop main vessel model’s brand power as well as high-tech vessel research. Also, the new economy growth point should be found by developing marine equipment manufacturing. In addition, the establishment of modernized shipbuilding module has to be accelerated by effectively addressing the problems in developing vessel equipment, such as focusing on industrial structural problems, speed up the technical innovation of the major shipbuilding equipment manufacturers, and increasing the production capability of major assembly equipment and components such as vessel engine, deck machinery, etc.
The Blue House, the Presidential Residence of the Republic of Korea South Korean government has established a plan to revive viable smaller shipbuilders and restructure the non-viable. First of all, export insurance increases 54% next year against 2008 for shipbuilding companies facing worsening liquidity problem. But the government decided to induce restructuring of some shipbuilders resolutely. Ministry of Knowledge Economy (MKE) on December 26 released this kind of both support and restructuring plan in a 2009 business report held at the Blue House. ‘Supporting the viable’ and ‘weeding out the non-viable’ will be put forward by a task force, co-organized by MKE and Financial Services Commission. Surplus work force at smaller shipbuilders, resulted by shortage of demand, will not be dismissed and will receive business training such as attaining certificates of technology, backed up by policy. MKE said it will introduce this sort of ‘employment preservation and retraining model’ and provide part of wage and training expense together with Ministry of Labor. For the resuscitation of troubled shipbuilders, export insurance will be expanded to KRW 19.5trn (USD 14.9bn) in 2009, which is larger by KRW 6.9trn against 2008. However, non-viable shipbuilders will be restructured promptly by work-out or M&A, etc. An official at MKE said, “The work place of liquidated companies will be incited to be used as ship-block assembly factory or ship-repair yard and we will help workers at those companies to be employed by other shipbuilders.” Aside from top six to seven large shipbuilders, the government plans to induce swift restructuring for smaller shipbuilders which are non-viable by a general assessment including facility, management and technology ratings.
3 measures for advanced Chinese shipbuilding
Ministry of Industry and Information Technology (MIIT) of the People’s Republic China said on December 24, Chinese marine industry has been affected by the international financial crisis and China strives to maintain stable development of shipbuilding industry by threemeasures such as protecting order-receipts and market, encouraging the development through reshuffling, and technology improvement in order to overcome the current production and management difficulties. The official said, shipbuilding industry requires strong makeshifts as well as the long term development strategies. Firstly, major shipbuilders’ shipbuilding tasks have to be completed and delivered as scheduled and long term development of shipbuilding industry will have to be supported by the increase of newbuilding demands. Secondly, through this market adjustment period, the allocation of resources has to be optimized and distributed rationally by eliminating the outdated production capacity. Also, shipbuilders should be encouraged for alliances or M&A in order to increase industrial concentration and the efficiency of resource use. In addition, Chinese major shipbuilding bases and major shipbuilders’ specialized production and assembly of the half-finished products for industrial clustering effect. At the same time, to improve quality, we should optimize the production structure and develop main vessel model’s brand power as well as high-tech vessel research. Also, the new economy growth point should be found by developing marine equipment manufacturing. In addition, the establishment of modernized shipbuilding module has to be accelerated by effectively addressing the problems in developing vessel equipment, such as focusing on industrial structural problems, speed up the technical innovation of the major shipbuilding equipment manufacturers, and increasing the production capability of major assembly equipment and components such as vessel engine, deck machinery, etc.
2008년 12월 25일 목요일
NEWS / December 26, 2008
‘Fatal Day’ for Korean shipbuilders
December 29’ will be this year’s last ‘D-day’ for South Korean shipbuilding industry. On the day, creditors of C& Heavy Industries will decide on whether to provide fresh loans to the ailing shipbuilder. Also, the formal contract for Daewoo Shipbuilding & Marine Engineering (DSME) sale is scheduled to be signed on the same day. Especially, small and medium sized shipbuilders are keeping a close watch on the decision of banking agencies over C& Heavy bailout as the decision could become a benchmark for the restructuring of 26 S&M sized shipbuilders scheduled to be take place early next year. Large shipbuilders are also on the watch for DSME sale as it can cause a shake-up in the shipbuilding industry. Early this month, the creditors of C& Heavy temporarily approved a plan to reschedule debts owed by the shipbuilder and provide fresh loans at the beginning of next year. But they are now in dispute on the allotment of the financial support. On December 29, C& Heavy’s destiny will be decided by a documentary resolution without meeting and if 75% of the creditors agree to rescue the shipbuilder, it will eventually get the new loans. On December 23, Hanwha Group, the preferred buyer for a controlling stake in DSME, requested Korea Development Bank (KDB), DSME’s top shareholder, to delay payment for the acquisition, which is slated by the end of March next year. After the proposal, KDB said, “a delay will be impossible.” Accordingly, whether the formal contract would be signed on December 29 remains to be seen. If the contract is concluded, Hanwha would pay additional KRW 300bn (USD 228m) and the deal would turn the corner.
China shores up shipbuilders
The Ministry of Industry and Information Technology of China (MIIT) is planning to release some policies to shore up the nation's shipbuilders, mainly with the help of domestic financial institutions.China's major shipbuilders last Sunday talked with eight financial institutions like The Export-import Bank of China and China Development Bank, for the financial support to the shipbuilders. Now, the related policies are being made but the details cannot be disclosed, according to people close to the issue. The nation's shipbuilding industry should focus on three aspects now, said a top MIIT official said. One is to guarantee orders; one is to adjust structure and boost development; and the last one is to enhance innovation in the industry. The policies will not be complicated and concrete, but it is sure that the financial institutions would back up the shipbuilders, said an expert at the China Shipbuilding Economy Research Center.
Mediterranean's largest shipyard only months away
The Besiktaş Shipping Group, a leading company in the Turkish maritime business, will soon complete preparations and begin constructing a shipbuilding facility in the Adana-Yumurtalık Free Trade Zone. Once complete, the shipyard will be the largest of its kind in the Mediterranean Basin. İhsan Kalkavan, the owner and chairman of the Beşiktaş group and a former manager of the Beşiktaş Soccer Club, said his company began preparations eight months ago after obtaining a license to build a shipyard in the region. It then rented 300,000 square meters of land and applied for an Environmental Impact Report (ÇED). Speaking to the Anatolia news agency yesterday, Kalkavan said he estimates the ÇED will be ready by the first week of January. He said construction will likely start by February or March. The shipyard will occupy 100,000 square meters of land and 300,000 square meters of sea. It will also have two pools, one of which will be 400 meters long and 70 meters wide while the other will be 350 meters long and 70 meters wide. These pools will be used for supertankers exceeding 300 meters in length that need repairs. "The shipyard will even be able to handle aircraft carriers," Kalkavan noted, adding that it will have the capacity to repair 100 ships (400,000 deadweight) annually. Construction is scheduled for completion in three years and will likely cost $100 million. The company will use its own resources to finance the project, which is expected to employ 3,000 persons.
CSC won 386TEU orders
According to Chongqing Municipal Commission of Foreign Trade and Economic Cooperation, Chongqing Dongfeng Shipbuilding Corporation (CSC) won a shipbuilding order for four 368TEU container ships from an American shipowner on December 17, 2008.
The vessels have the total length of 106.68 meters, the width of 20.6 meters, the height of 5.8 meters, and the draft of 4.215 meters, and are classed into BV. These vessels will be built in accordance with ‘Performance Standard for Protective Coating’, which means this is CSC’s formal entry into the shipbuilding field of international container ships after the proclamation of the new shipbuilding rules from IMO, and CSC is one of the few shipyards which can follow the new rules at present. It is reported that this is the first order-receipt after company’s technical innovation, as well as the first shipbuilding order taken under the recent international financial crisis which affected the vessel export badly and resulted in almost zero volume of newbuilding delivery.
CSBC completed 12,600TEU
According to the report from United Daily News in Taiwan, Zheng Wenlong, the CEO of CSBC Corporation Taiwan said on December 22 that CSBC had completed the research and development of world’s largest containership.It was ordered by Taiwan’s Yang Ming Line (YML) originally but now the order is on hold due to the recession in shipping industry, he said. Zheng said that CSBC has already become one of the most competitive shipyards in the world after being listed on the stock market. CSBC’s 12,600 TEU containerships 366 meters in length and 48.3 meters in width belong to world’s first class and show Taiwan’s shipbuilding and design capability. It is understood that the largest container ships designed by the world’s largest shipbuilding country South Korea are for 12,500TEU level at present. He said that company strives for public facilities business opportunities including 'Love Taiwan 12 construction projects' in order to disperse the operating risks and enhance profits.
2008년 12월 22일 월요일
NEWS / December 23, 2008
Navig8 cancels product tankers order
The significant diversification by Drydocks World Dubai into the mainstream newbuilding market has been dealt a major blow, following with the cancellation of a newbuilding contract for four MR product tankers by Singapore-based Navig8 Group.
The tanker operator, which only started business in March 2007, is blaming its decision to pull out of the Dubai deal on poor market conditions. However, Navig8 spokesman Modi Mano said that “the contract was cancelled mutually between the shipyard and ourselves”.
He would not be drawn further on the reasons behind the order being pulled, nor would he confirm the contract price.
The four 53,500 dwt double-hull tankers were scheduled for delivery in 2010 and 2011. Navig8 also held an option on a further four vessels of the same class. No details have been given by the shipyard or the owner about compensation terms.
Steel cutting on the product tankers had yet to start, as DWD is busy with the construction of eight sophisticated seismic survey vessels for Norwegian and UAE owners.
Two of these vessels are being built for Norway’s Western Geco, and are expected to be operated by recently acquired Dubai-based operator Eastern Echo. Another six vessels are under construction for Dubai’s newly established Polarcus. All of the new buildings are of the unique Ulstein Design X-bow design and are due for delivery from the second half of 2009 through to the end of 2010.
Navig8, meanwhile, has a number of tankers under construction at shipyards in the Far East; two 114,000 dwt product tankers at China’s New Times Shipbuilding, four 75,000 dwt tankers at Korea’s Sungdong Heavy Industries and one 6,800 dwt vessel at China’s Jiangmen Shipyard.
The significant diversification by Drydocks World Dubai into the mainstream newbuilding market has been dealt a major blow, following with the cancellation of a newbuilding contract for four MR product tankers by Singapore-based Navig8 Group.
The tanker operator, which only started business in March 2007, is blaming its decision to pull out of the Dubai deal on poor market conditions. However, Navig8 spokesman Modi Mano said that “the contract was cancelled mutually between the shipyard and ourselves”.
He would not be drawn further on the reasons behind the order being pulled, nor would he confirm the contract price.
The four 53,500 dwt double-hull tankers were scheduled for delivery in 2010 and 2011. Navig8 also held an option on a further four vessels of the same class. No details have been given by the shipyard or the owner about compensation terms.
Steel cutting on the product tankers had yet to start, as DWD is busy with the construction of eight sophisticated seismic survey vessels for Norwegian and UAE owners.
Two of these vessels are being built for Norway’s Western Geco, and are expected to be operated by recently acquired Dubai-based operator Eastern Echo. Another six vessels are under construction for Dubai’s newly established Polarcus. All of the new buildings are of the unique Ulstein Design X-bow design and are due for delivery from the second half of 2009 through to the end of 2010.
Navig8, meanwhile, has a number of tankers under construction at shipyards in the Far East; two 114,000 dwt product tankers at China’s New Times Shipbuilding, four 75,000 dwt tankers at Korea’s Sungdong Heavy Industries and one 6,800 dwt vessel at China’s Jiangmen Shipyard.
2008년 12월 21일 일요일
NEWS / December 22, 2008
USA want more shipbuilding
U.S. Senator Susan Collins, R-Maine, and U.S. Senator Mary Landrieu, D-La., on Dec 19 wrote President-elect Barack Obama urging his Administration to support robust shipbuilding policies that would support the U.S. Navy, Marine Corps, and Coast Guard and re-energize commercial ship construction in the United States.
The letter, which was cosigned by 18 other senators, points out that while military leaders have documented a minimum national requirement of 313 ships to support America’s Navy and Marine Corps, the Navy’s fleet has declined to 284 ships. In order to attain 313 ships, 12 ships need to be budgeted annually. “Expanding American shipbuilding has the duel benefit of strengthening a critical branch of our national defense while bolstering our strained economy,” Sen. Landrieu said. “Attaining the minimum 313 ships that military leaders advise means we will have a naval fleet that competes with those of our potential adversaries. At a time when American manufacturing jobs are moving overseas, we have an opportunity to create highly-skilled jobs for the American manufacturing workforce here at home. I look forward to working with the Obama Administration to ensure that we support our military by building the necessary ships to protect our homeland and advance security needs abroad.” “With the smallest number of ships in the United States Navy since before World War II, I am deeply concerned by the insufficient size of today’s fleet and that funding for shipbuilding has not been adequate to achieve the 313 ships necessary to meet national security requirements,” Sen. Collins said. “We must maintain the skilled workforce necessary to expand and modernize our naval fleet to counter existing and emerging threats. Building more ships would also boost our economy by creating and preserving thousands of good jobs. As the new Administration prepares its budget, I hope our bipartisan letter will encourage adequate funding for shipbuilding.” In pressing their argument for an increased budget for defense and commercial shipbuilding in the United States, the senators highlighted both the economic and homeland security benefits that would accompany such a policy. An estimated 400,000 people in 47 states are employed by the shipbuilding industry, which consists of six major shipbuilding yards, several smaller ship construction and repair yards, and more than 4,000 major manufacturers of ship components and systems. One such shipyard is Northrop Grumman’s Avondale shipyard on the West Bank in New Orleans, which is the largest manufacturing employer in Louisiana with about 5,000 workers. This fall, Sen. Landrieu secured $933 million in the Continuing Resolution for the next LPD-17 ship to be built at Avondale. The funding is for construction of the 10th ship in the 11-ship program. While the President requested just $1.3 million for the program this year, Sen. Landrieu has pushed for its full funding at $1.7 billion. Without the funding for the LPD-17 program at Avondale, about 1,000 manufacturing jobs would have been at risk. The senators also highlighted the national security benefits to increasing America’s shipbuilding. “While America’s naval fleet is in decline, the navies of potential adversaries are on the rise,” the letter reads. “Russia has made rebuilding its naval power a priority, and the navy of China is expanding rapidly. By 2015 the Chinese Navy is projected to be larger than ours, and Russia has stated its intention to have the second largest Navy in the world by 2022. These countries may be building their naval forces to deny America access to critical regions and to limit America’s influence around the world.
Fincantieri reconsider delivery date
Italy’s Fincantieri revealed, it has recently been requested the late delivery of the cruises by some cruise companies.An official at Fincantieri said that it is mainly due to the jump in raw material prices followed by weakened USD exchange rate. He confirmed that company has already lost a very important super-large cruise order. It has been worrying about not being able to cash the two cruises ordered by Grimaldi Lines.
Orders drop in Japan
Shipyards in Japan, the world's third-largest shipbuilding nation, received 83 percent fewer orders last month as the global financial crisis cut demand for new vessels.The yards received orders for 219,823 compensated gross tons in November, the Japan Ship Exporters Association said today on its Web site. That compares with 1.27 million tons a year earlier. Orders this year have slipped 11 percent to 8.69 million compensated gross tons. The deepening financial crisis has dried up funds and global demand for commodities, prompting owners and operators of vessels to hold back purchases. The Baltic Dry Index, a benchmark of demand for shipping dry goods such as iron ore, has fallen more than 90 percent from a May record. "Enquiries by shipowners for new ships have declined due to the global financial crisis and a slump in the shipping markets," Masamoto Tazaki, chairman of the 20-member Shipbuilders' Association of Japan, said today at a press conference in Tokyo. Members of the group include Mitsubishi Heavy Industries Ltd., Mitsui Engineering & Shipbuilding Co. and closely held Imabari Shipbuilding Co. While contracts have dipped, there have been no reports of order cancellations at Japanese shipyards. The nation's shipbuilders are under no pressure to sign new contracts as they have four years of order backlogs, he said. Compensated gross ton is an industry measure of ship size, the time required and materials used in production. Meanwhile, DryShips Inc., whose ships carry raw commodities, canceled an agreement to buy four Panamax-class vessels for US$400 million and retained the right to purchase the ships by the end of next year. The company will lose US$55 million in deposits for the four vessels, which are owned by entities controlled by DryShips Chief Executive Officer George Economou, according to a statement. The original agreement was made in July. The company also paid US$105 million for the option to buy the ships by the end of next year for US$160 million more, according to the statement. Panamax carriers usually haul 75,000-ton cargoes.
U.S. Senator Susan Collins, R-Maine, and U.S. Senator Mary Landrieu, D-La., on Dec 19 wrote President-elect Barack Obama urging his Administration to support robust shipbuilding policies that would support the U.S. Navy, Marine Corps, and Coast Guard and re-energize commercial ship construction in the United States.
The letter, which was cosigned by 18 other senators, points out that while military leaders have documented a minimum national requirement of 313 ships to support America’s Navy and Marine Corps, the Navy’s fleet has declined to 284 ships. In order to attain 313 ships, 12 ships need to be budgeted annually. “Expanding American shipbuilding has the duel benefit of strengthening a critical branch of our national defense while bolstering our strained economy,” Sen. Landrieu said. “Attaining the minimum 313 ships that military leaders advise means we will have a naval fleet that competes with those of our potential adversaries. At a time when American manufacturing jobs are moving overseas, we have an opportunity to create highly-skilled jobs for the American manufacturing workforce here at home. I look forward to working with the Obama Administration to ensure that we support our military by building the necessary ships to protect our homeland and advance security needs abroad.” “With the smallest number of ships in the United States Navy since before World War II, I am deeply concerned by the insufficient size of today’s fleet and that funding for shipbuilding has not been adequate to achieve the 313 ships necessary to meet national security requirements,” Sen. Collins said. “We must maintain the skilled workforce necessary to expand and modernize our naval fleet to counter existing and emerging threats. Building more ships would also boost our economy by creating and preserving thousands of good jobs. As the new Administration prepares its budget, I hope our bipartisan letter will encourage adequate funding for shipbuilding.” In pressing their argument for an increased budget for defense and commercial shipbuilding in the United States, the senators highlighted both the economic and homeland security benefits that would accompany such a policy. An estimated 400,000 people in 47 states are employed by the shipbuilding industry, which consists of six major shipbuilding yards, several smaller ship construction and repair yards, and more than 4,000 major manufacturers of ship components and systems. One such shipyard is Northrop Grumman’s Avondale shipyard on the West Bank in New Orleans, which is the largest manufacturing employer in Louisiana with about 5,000 workers. This fall, Sen. Landrieu secured $933 million in the Continuing Resolution for the next LPD-17 ship to be built at Avondale. The funding is for construction of the 10th ship in the 11-ship program. While the President requested just $1.3 million for the program this year, Sen. Landrieu has pushed for its full funding at $1.7 billion. Without the funding for the LPD-17 program at Avondale, about 1,000 manufacturing jobs would have been at risk. The senators also highlighted the national security benefits to increasing America’s shipbuilding. “While America’s naval fleet is in decline, the navies of potential adversaries are on the rise,” the letter reads. “Russia has made rebuilding its naval power a priority, and the navy of China is expanding rapidly. By 2015 the Chinese Navy is projected to be larger than ours, and Russia has stated its intention to have the second largest Navy in the world by 2022. These countries may be building their naval forces to deny America access to critical regions and to limit America’s influence around the world.
Fincantieri reconsider delivery date
Italy’s Fincantieri revealed, it has recently been requested the late delivery of the cruises by some cruise companies.An official at Fincantieri said that it is mainly due to the jump in raw material prices followed by weakened USD exchange rate. He confirmed that company has already lost a very important super-large cruise order. It has been worrying about not being able to cash the two cruises ordered by Grimaldi Lines.
Orders drop in Japan
Shipyards in Japan, the world's third-largest shipbuilding nation, received 83 percent fewer orders last month as the global financial crisis cut demand for new vessels.The yards received orders for 219,823 compensated gross tons in November, the Japan Ship Exporters Association said today on its Web site. That compares with 1.27 million tons a year earlier. Orders this year have slipped 11 percent to 8.69 million compensated gross tons. The deepening financial crisis has dried up funds and global demand for commodities, prompting owners and operators of vessels to hold back purchases. The Baltic Dry Index, a benchmark of demand for shipping dry goods such as iron ore, has fallen more than 90 percent from a May record. "Enquiries by shipowners for new ships have declined due to the global financial crisis and a slump in the shipping markets," Masamoto Tazaki, chairman of the 20-member Shipbuilders' Association of Japan, said today at a press conference in Tokyo. Members of the group include Mitsubishi Heavy Industries Ltd., Mitsui Engineering & Shipbuilding Co. and closely held Imabari Shipbuilding Co. While contracts have dipped, there have been no reports of order cancellations at Japanese shipyards. The nation's shipbuilders are under no pressure to sign new contracts as they have four years of order backlogs, he said. Compensated gross ton is an industry measure of ship size, the time required and materials used in production. Meanwhile, DryShips Inc., whose ships carry raw commodities, canceled an agreement to buy four Panamax-class vessels for US$400 million and retained the right to purchase the ships by the end of next year. The company will lose US$55 million in deposits for the four vessels, which are owned by entities controlled by DryShips Chief Executive Officer George Economou, according to a statement. The original agreement was made in July. The company also paid US$105 million for the option to buy the ships by the end of next year for US$160 million more, according to the statement. Panamax carriers usually haul 75,000-ton cargoes.
2008년 12월 18일 목요일
NEWS / December 19, 2008
Hyundai, Daewoo miss order targets
South Korea's Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering, the world's No. 1 and No. 3 shipbuilder, missed their order goals this year as the global economic recession has dampened demand for new vessels, an industry source said Thursday.
Still, some analysts say the nation's top three shipbuilders, including world's No. 2 shipyard Samsung Heavy Industries, fared well as they had secured enough orders to keep them busy over the next three years, despite the abrupt downturn in the global shipping industry. So far this year, Hyundai Heavy won orders worth US$21.9 billion, accounting for 75.5 per cent of its original self-set target. Daewoo Shipbuilding received orders worth $11.7 billion, compared with its goal of $17.5 billion. Samsung Heavy was the only shipyard among the world's top three shipbuilders to meet its order goal of $15 billion. Last week, a research unit of state-run Korea Development Bank predicted that new orders for South Korean shipbuilders would plunge 28.6 per cent next year due to the deepening global recession.
South Korea's Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering, the world's No. 1 and No. 3 shipbuilder, missed their order goals this year as the global economic recession has dampened demand for new vessels, an industry source said Thursday.
Still, some analysts say the nation's top three shipbuilders, including world's No. 2 shipyard Samsung Heavy Industries, fared well as they had secured enough orders to keep them busy over the next three years, despite the abrupt downturn in the global shipping industry. So far this year, Hyundai Heavy won orders worth US$21.9 billion, accounting for 75.5 per cent of its original self-set target. Daewoo Shipbuilding received orders worth $11.7 billion, compared with its goal of $17.5 billion. Samsung Heavy was the only shipyard among the world's top three shipbuilders to meet its order goal of $15 billion. Last week, a research unit of state-run Korea Development Bank predicted that new orders for South Korean shipbuilders would plunge 28.6 per cent next year due to the deepening global recession.
2008년 12월 17일 수요일
NEWS / December 18, 2008
First cancellation of newbuilding in Japan
The cancellation of newbuilding order which have become effective seems to have occurred for the first time in Japan. According to market sources, the canceled order was placed by a leading Japanese shipowner at a compatriot shipyard and the down payment on the contract seems to have already been made.
Canceled ships are said to be a couple of mid-sized bulkers and delivery date and ship prices were not disclosed. The shipowner reportedly had not secured a charter contract before placing the order and as it got harder to find a charterer due to the market slump, the owner seems to have decided to nullify the order. It is said that the owner forfeited the deposit and paid a large sum of money additionally as an indemnity. The entire Japanese shipbuilding industry is expressing surprise over the cancellation. Some say even angrily that the decision is ‘absurd and intolerable’. Meanwhile, some say that the reason the shipyard accepted the cancellation request is that the shipowner is a ‘compatriot’. Besides, according to market sources, it is said an overseas shipowner has also requested cancellation at two Japanese shipyards. Ship type at stake is reportedly medium bulkers. It is said that the foreign owner had sold the newbuildings under construction to other owner but the buyer canceled it. Or it is said the charter contract the owner had settled in advance was canceled. Japanese shipbuilders, in any economic slumps, have so far completed all newbuilding deals once they came into effect and accordingly many say that it is unreasonable to demand order cancellation and firm attitude should be taken such as litigation. Some worry that one cancellation might lead to a flood of retraction requests. Newbuilding order cancellation is not just a matter of deposit loss but also causes a shipyard to get into a mess in terms of its shipbuilding schedule.
ABG Shipyard faces Rs 1,000-cr order cancellation
India’s largest private sector shipbuilder ABG Shipyard is running the risk of cancellation of orders worth Rs 1,000 crore ($211m) as the prospective Norwegian buyer for three seismic surveyor vessels is facing financial crunch. The Norway-based seismic data acquisition company, Scan Geophysical, on Monday said it failed to sign a sale and leaseback deal for the three vessels. Under a sale and leaseback agreement, a company sells the asset it owns, and leases it back from the buyer, typically on a long lease. The advantage is that the sale frees up capital to reduce debt while allowing it to use the same property. About a month ago, ABG Shipyard’s Singapore-based group company Pacific First Shipping (PFS) signed a letter of intent with Scan Geophysical for a sale and leaseback agreement. The agreement implied that Scan will sell its three new high-capacity 3D vessels, including complete seismic equipment, to PFS assuming responsibility for the majority of the remaining commitments related to the vessels and seismic equipment during the construction period. “Pacific First basically got into the agreement to save ABG Shipyard’s ship-building contract,” said an analyst tracking the company and familiar with the development. The stock of Scan Geophysical is down by over 98 per cent this year and about 99 per cent since its IPO at 27 crowns in May last year. “The Norwegian company has failed to get into the sale and leaseback deal but it may get into such a deal with Pacific First Shipping in coming times,” said Dhananjay Datar, chief financial officer, ABG Shipyard. “Our shipping contract is intact and it has not got any impact of it,” he insisted. Now, the Norwegian company is trying to raise debt to help the company sail through the trouble. “SCAN has already invested substantial amounts in seismic equipment for the new builds and will seek to raise debt financing secured by this equipment,” said the company to the local stock exchange in a statement on Monday. Delivery for the vessels are due in May 2009, December 2009 and June 2010. Published : December 18, 2008
ABG Shipyard faces Rs 1,000-cr order cancellation
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-->India’s largest private sector shipbuilder ABG Shipyard is running the risk of cancellation of orders worth Rs 1,000 crore ($211m) as the prospective Norwegian buyer for three seismic surveyor vessels is facing financial crunch. The Norway-based seismic data acquisition company, Scan Geophysical, on Monday said it failed to sign a sale and leaseback deal for the three vessels. Under a sale and leaseback agreement, a company sells the asset it owns, and leases it back from the buyer, typically on a long lease. The advantage is that the sale frees up capital to reduce debt while allowing it to use the same property. About a month ago, ABG Shipyard’s Singapore-based group company Pacific First Shipping (PFS) signed a letter of intent with Scan Geophysical for a sale and leaseback agreement. The agreement implied that Scan will sell its three new high-capacity 3D vessels, including complete seismic equipment, to PFS assuming responsibility for the majority of the remaining commitments related to the vessels and seismic equipment during the construction period. “Pacific First basically got into the agreement to save ABG Shipyard’s ship-building contract,” said an analyst tracking the company and familiar with the development. The stock of Scan Geophysical is down by over 98 per cent this year and about 99 per cent since its IPO at 27 crowns in May last year. “The Norwegian company has failed to get into the sale and leaseback deal but it may get into such a deal with Pacific First Shipping in coming times,” said Dhananjay Datar, chief financial officer, ABG Shipyard. “Our shipping contract is intact and it has not got any impact of it,” he insisted. Now, the Norwegian company is trying to raise debt to help the company sail through the trouble. “SCAN has already invested substantial amounts in seismic equipment for the new builds and will seek to raise debt financing secured by this equipment,” said the company to the local stock exchange in a statement on Monday. Delivery for the vessels are due in May 2009, December 2009 and June 2010.
The cancellation of newbuilding order which have become effective seems to have occurred for the first time in Japan. According to market sources, the canceled order was placed by a leading Japanese shipowner at a compatriot shipyard and the down payment on the contract seems to have already been made.
Canceled ships are said to be a couple of mid-sized bulkers and delivery date and ship prices were not disclosed. The shipowner reportedly had not secured a charter contract before placing the order and as it got harder to find a charterer due to the market slump, the owner seems to have decided to nullify the order. It is said that the owner forfeited the deposit and paid a large sum of money additionally as an indemnity. The entire Japanese shipbuilding industry is expressing surprise over the cancellation. Some say even angrily that the decision is ‘absurd and intolerable’. Meanwhile, some say that the reason the shipyard accepted the cancellation request is that the shipowner is a ‘compatriot’. Besides, according to market sources, it is said an overseas shipowner has also requested cancellation at two Japanese shipyards. Ship type at stake is reportedly medium bulkers. It is said that the foreign owner had sold the newbuildings under construction to other owner but the buyer canceled it. Or it is said the charter contract the owner had settled in advance was canceled. Japanese shipbuilders, in any economic slumps, have so far completed all newbuilding deals once they came into effect and accordingly many say that it is unreasonable to demand order cancellation and firm attitude should be taken such as litigation. Some worry that one cancellation might lead to a flood of retraction requests. Newbuilding order cancellation is not just a matter of deposit loss but also causes a shipyard to get into a mess in terms of its shipbuilding schedule.
ABG Shipyard faces Rs 1,000-cr order cancellation
India’s largest private sector shipbuilder ABG Shipyard is running the risk of cancellation of orders worth Rs 1,000 crore ($211m) as the prospective Norwegian buyer for three seismic surveyor vessels is facing financial crunch. The Norway-based seismic data acquisition company, Scan Geophysical, on Monday said it failed to sign a sale and leaseback deal for the three vessels. Under a sale and leaseback agreement, a company sells the asset it owns, and leases it back from the buyer, typically on a long lease. The advantage is that the sale frees up capital to reduce debt while allowing it to use the same property. About a month ago, ABG Shipyard’s Singapore-based group company Pacific First Shipping (PFS) signed a letter of intent with Scan Geophysical for a sale and leaseback agreement. The agreement implied that Scan will sell its three new high-capacity 3D vessels, including complete seismic equipment, to PFS assuming responsibility for the majority of the remaining commitments related to the vessels and seismic equipment during the construction period. “Pacific First basically got into the agreement to save ABG Shipyard’s ship-building contract,” said an analyst tracking the company and familiar with the development. The stock of Scan Geophysical is down by over 98 per cent this year and about 99 per cent since its IPO at 27 crowns in May last year. “The Norwegian company has failed to get into the sale and leaseback deal but it may get into such a deal with Pacific First Shipping in coming times,” said Dhananjay Datar, chief financial officer, ABG Shipyard. “Our shipping contract is intact and it has not got any impact of it,” he insisted. Now, the Norwegian company is trying to raise debt to help the company sail through the trouble. “SCAN has already invested substantial amounts in seismic equipment for the new builds and will seek to raise debt financing secured by this equipment,” said the company to the local stock exchange in a statement on Monday. Delivery for the vessels are due in May 2009, December 2009 and June 2010. Published : December 18, 2008
ABG Shipyard faces Rs 1,000-cr order cancellation
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-->India’s largest private sector shipbuilder ABG Shipyard is running the risk of cancellation of orders worth Rs 1,000 crore ($211m) as the prospective Norwegian buyer for three seismic surveyor vessels is facing financial crunch. The Norway-based seismic data acquisition company, Scan Geophysical, on Monday said it failed to sign a sale and leaseback deal for the three vessels. Under a sale and leaseback agreement, a company sells the asset it owns, and leases it back from the buyer, typically on a long lease. The advantage is that the sale frees up capital to reduce debt while allowing it to use the same property. About a month ago, ABG Shipyard’s Singapore-based group company Pacific First Shipping (PFS) signed a letter of intent with Scan Geophysical for a sale and leaseback agreement. The agreement implied that Scan will sell its three new high-capacity 3D vessels, including complete seismic equipment, to PFS assuming responsibility for the majority of the remaining commitments related to the vessels and seismic equipment during the construction period. “Pacific First basically got into the agreement to save ABG Shipyard’s ship-building contract,” said an analyst tracking the company and familiar with the development. The stock of Scan Geophysical is down by over 98 per cent this year and about 99 per cent since its IPO at 27 crowns in May last year. “The Norwegian company has failed to get into the sale and leaseback deal but it may get into such a deal with Pacific First Shipping in coming times,” said Dhananjay Datar, chief financial officer, ABG Shipyard. “Our shipping contract is intact and it has not got any impact of it,” he insisted. Now, the Norwegian company is trying to raise debt to help the company sail through the trouble. “SCAN has already invested substantial amounts in seismic equipment for the new builds and will seek to raise debt financing secured by this equipment,” said the company to the local stock exchange in a statement on Monday. Delivery for the vessels are due in May 2009, December 2009 and June 2010.
2008년 12월 16일 화요일
NEWS / December 17, 2008
Daewoo in a VLCC newbuilding negotiation
Daewoo Shipbuilding & Marine Engineering (DSME) in South Korea is reportedly in the final phase of negotiation for the construction of very large crude carrier. The orderer seems to be Greek or Middle East shipowner and the delivery date is said to be slated for 2012. Ship price is yet to be revealed. After October, when the global financial crisis deepened, newbuilding ordering activity almost froze. As for VLCC sector, compatriot STX Shipbuilding recently received an order for the construction of one VLCC with an option for one more from Italy’s Dolphin Tankers for $155.7m with delivery scheduled for November 2011. DSME has not received new orders for commercial ships after it secured an order as a replacement of a cancelled order for containership in September. So, the reported negotiation for VLCC is attracting industry’s attention as a newbuilding negotiation when the market is slowing.
‘Golden Era’ has gone
Shipbuilding Industry has riding the economic wave with timetable. The global shipbuilding industry has witnessed many crests & troughs in its growth story from the period spanning the 1960s. With the industry dominance shifting from the European to the Asian nations such as S. Korea, China and Japan, the industry has undergone massive changes in terms of construction technologies, new demand for various ship types etc. The period spanning 2000-2007 has been a ‘golden era’ for the global shipbuilders with the global order book position growing at a CAGR of 22.9%. The investments in the industry too have kept pace with the order book requirements. However the deliveries of the ships have not been able to keep pace with the growing order books and as such, the order books of the major shipbuilding nations are booked up to 2012. Even the composition of the global order books has witnessed a considerable change since 2000, with increased ordering in the Dry Bulk segment during the recent years. With an increase in Exploration & Production (E&P) activities, the ordering in the Offshore Vessel segment too has surged significantly. The industry remains highly consolidated with the Asian shipbuilders accounting for a major chunk of the global order books. Of the Asian nations, the Korean, the Chinese and the Japanese shipbuilders in particular dominate the global shipbuilding arena. The shipbuilding activity in the European nations has witnessed a downtrend owing to the unavailability of labour and the corresponding high labour costs. Even though Japan still remains one of the top global shipbuilding nations in terms of order book position, the country’s shipbuilding prospects appear bleak. Countries such as India, Vietnam etc., with an abundance of cheap labour have recently emerged to the fore in the global shipbuilding arena.
Hudong-Zhonghua dilivered 8,530TEU
China's largest self-design and constructed 101,000dwt container ship was delivered in Shanghai on December 12. It has a length of 335m and its height from bilge to deck reaches 7-8 floors. This vessel, known as the XIN FEI ZHOU, is a ‘super-large’ container ship Hudong-Zhonghua Shipbuilding (Group) has developed and built for China Shipping Container Lines. It is a 8530TEU Post-panamax container ship and one of the world’s mainstream container ship models. It has a width of 42.8m and depth of 24.8m. Four generators on board ensure the vessel operation and fulfill the needs of refrigerated container ships, it can be driven by one person. World’s financial crisis has affected China’s shipbuilding industry. A large number of minor shipyards encountered difficulties and entered into ‘winter’ season. Hudong-Zhonghua has taken timely measures to enhance its capacity to resist risks. It has joined the world’s leading large shipbuilding company by continuing research and development of high-tech and high value-added products, such as thin film type LNG ships and 8530TEU container ships.
Inland-river ships newbuilding boom again
According to the data, the number of vessel under construction on the inland river has already exceeded 150 units, most of them are 500-2000ton dry cargo ships.Due to the explosive expansion of shipbuilding business on inland river, some shipyards are even not able to start the construction, and large number of order-receipts at shipyards are for inland river vessels. The re-emergence of the prosperity in Shipbuilding industry in Yangzhou is mainly due to the sharp drop in market price of steel products followed by international financial turmoil. The price gap over the four months from August till November 2008 has exceeded 50% of the peak price. Some shipowners were not able to place shipbuilding orders due to the price rise after they have obsoleted small tonnage vessels last year, the rapid decline in steel price have cut down the inland river vessel prices and it led to shipbuilding order boom.
Hyundai delivers first CSR VLCC
Hyundai delivers first very large crude carrier (VLCC) built to the industry’s new Common Structural Rules (CSR) for Antwerp-based Euronav NV. The 318,000dwt Olympia (pictured), constructed to Lloyd’s Register class, is the first of two sister-ships being built by Euronav at HHI to advanced environmental protection and safety standards for deployment in the demanding oil transportation industry.
“As the first VLCC built in Korea to CSR, Olympia is a milestone in the drive towards the construction of ever-safer tankers,” says Marinos Syrigos, site manager for Euronav Ship Management (Hellas). “We are certainly proud of having undertaken a key role - together with Lloyd’s Register and Hyundai - in such an important project.” Euronav’s management have committed to maintaining 'green passports' for Olympia and her sistership, Antarctica, assuring that the materials used and installed on the vessels during the owner’s possession are recorded, demonstrating their commitment to the environment. This record is ultimately critical to the safe scrapping of the vessels at the end of their trading lives. They have also selected a higher standard of bridge layout and visibility and achieved the requirements of NAV1 notation from Lloyd's Register to improve the safe operation of the vessel, choosing advanced technical features which are expected to prove particularly valuable in the increasingly congested waters of the world’s major trade lanes. According to Lindsay Butler, the project manager for Lloyd’s Register Asia, the delivery of the Olympia has ushered in the next generation of tankers from Korean shipyards, ships built under CSR rules that offer the technical advances and innovation required by the industry and society at large. “This robust ship has raised the standards by increasing the requirements for strength and durability and by developing transparent requirements for fatigue assessment and corrosion, maintaining a direct link between design and the anticipated operational demands throughout all phases of her construction,” Butler says. “Euronav is demonstrating their commitment to the industry by offering the services of a ship with our Green Passport and Environmental Protection notations. They combined those features with a hi-tech bridge layout, completing the package of a robust, environmentally friendly ship with advanced operating features.” The new Common Structural Rules, released in 2006 after development by the major classification societies in consultation with the industry’s leading ship owners, builders and design houses, have triggered a wave of new designs from the world’s shipyards. The Olympia has a length of 319mtr, a breadth of 60mtr and a moulded depth of 27.8mtr, with engine power of 29,340 kW. According to the Lloyd's Register - Fairplay database, the Lloyd Register orderbook in Korea comprised 435 vessels, or 30.9m gross tons as of September 30.
50% of bulker order cancel
Half of the dry bulk newbuilding deliveries in 2010 are in doubt because of a lack of owners’ finance and unrealistic promises from yards to deliver on time, a leading investment bank has warned.
In 2007, shipowners placed $90bn in dry bulk vessel orderings, more than the previous nine years combined, according to the latest research note by Macquarie Research Equities. But in the past three months, dry bulk shipping rates have collapsed and owners have found it difficult to obtain finance to make payments for their vessels on order. Shipyards took so many orders last year that they were unlikely to be delivered on time, Macquarie said. As a result, Macquarie warned that as much as half of the planned deliveries in 2010 were in doubt. “However, we note that both of these themes would have been an issue even without the deepening of the credit crisis over the past three months,” Macquarie said. In 2010, Macquarie estimated that 108.5m dwt of vessels were planned for delivery. This has now been revised down to 65.1m dwt. There is typically a two-year lag between the increased freight rates and increased deliveries of vessels. As such, fleet growth was expected to continue to accelerate into the middle of 2010, according to Macquarie. “However, looking at previous cycles and the two years lag for supply to diminish, this would imply that much of the mid-2010 deliveries would be in jeopardy, based on previous responses. “One reason for this is that it is likely that for many of these vessels, no more than 20% was put on deposits and only limited expenditures have been made by the yards. “Given that vessel values have fallen well below construction cost even after taking into account the 20% deposit, many of these ships will not be made,” Macquarie said. Macquarie estimated that only 23% of the dry bulk order book has received any further payments, beyond the first down payment. Furthermore, more than 10% of orders were estimated to not have paid deposits. “We expect close to 100% of all orders without a deposit to be cancelled or renegotiated,” Macquarie said. Macquaries said that $46bn worth of finance was needed in 2008, $66bn in 2009 and $31bn in 2010. This assumed that 80% of the vessel investment is financed by debt and 20% by equity. Macquarie said it had visited 15 shipyards in China over the summer and found widespread problems with cancellations. Of those yards, 11 had reported cancellations with shipowner financing the main issue. None of the yards claimed to have had any cancellations after the first down payment. However, Macquarie expected that the situation had since deteriorated substantially. In 2008, yards were expected to deliver over 30m dwt of dry bulk vessels, but have only delivered around 18m dwt through to the end of October Macquarie said. Of the Chinese yards visited in the summer, 80% were experiencing delays in delivering on time, Macquarie said. The primary cause for delays was a lack of shipbuilding experience and technology for smaller yards, while larger yards cited a shortage of ship components as the constraint. Macquarie said that the yards credible was now the main issue, which was over and above the ship financing issues. “In other words, even for the ship owners that are able to deliver funding for vessels, will the shipyards themselves be able to deliver? We think not,” Macquarie said.
Daewoo Shipbuilding & Marine Engineering (DSME) in South Korea is reportedly in the final phase of negotiation for the construction of very large crude carrier. The orderer seems to be Greek or Middle East shipowner and the delivery date is said to be slated for 2012. Ship price is yet to be revealed. After October, when the global financial crisis deepened, newbuilding ordering activity almost froze. As for VLCC sector, compatriot STX Shipbuilding recently received an order for the construction of one VLCC with an option for one more from Italy’s Dolphin Tankers for $155.7m with delivery scheduled for November 2011. DSME has not received new orders for commercial ships after it secured an order as a replacement of a cancelled order for containership in September. So, the reported negotiation for VLCC is attracting industry’s attention as a newbuilding negotiation when the market is slowing.
‘Golden Era’ has gone
Shipbuilding Industry has riding the economic wave with timetable. The global shipbuilding industry has witnessed many crests & troughs in its growth story from the period spanning the 1960s. With the industry dominance shifting from the European to the Asian nations such as S. Korea, China and Japan, the industry has undergone massive changes in terms of construction technologies, new demand for various ship types etc. The period spanning 2000-2007 has been a ‘golden era’ for the global shipbuilders with the global order book position growing at a CAGR of 22.9%. The investments in the industry too have kept pace with the order book requirements. However the deliveries of the ships have not been able to keep pace with the growing order books and as such, the order books of the major shipbuilding nations are booked up to 2012. Even the composition of the global order books has witnessed a considerable change since 2000, with increased ordering in the Dry Bulk segment during the recent years. With an increase in Exploration & Production (E&P) activities, the ordering in the Offshore Vessel segment too has surged significantly. The industry remains highly consolidated with the Asian shipbuilders accounting for a major chunk of the global order books. Of the Asian nations, the Korean, the Chinese and the Japanese shipbuilders in particular dominate the global shipbuilding arena. The shipbuilding activity in the European nations has witnessed a downtrend owing to the unavailability of labour and the corresponding high labour costs. Even though Japan still remains one of the top global shipbuilding nations in terms of order book position, the country’s shipbuilding prospects appear bleak. Countries such as India, Vietnam etc., with an abundance of cheap labour have recently emerged to the fore in the global shipbuilding arena.
Hudong-Zhonghua dilivered 8,530TEU
China's largest self-design and constructed 101,000dwt container ship was delivered in Shanghai on December 12. It has a length of 335m and its height from bilge to deck reaches 7-8 floors. This vessel, known as the XIN FEI ZHOU, is a ‘super-large’ container ship Hudong-Zhonghua Shipbuilding (Group) has developed and built for China Shipping Container Lines. It is a 8530TEU Post-panamax container ship and one of the world’s mainstream container ship models. It has a width of 42.8m and depth of 24.8m. Four generators on board ensure the vessel operation and fulfill the needs of refrigerated container ships, it can be driven by one person. World’s financial crisis has affected China’s shipbuilding industry. A large number of minor shipyards encountered difficulties and entered into ‘winter’ season. Hudong-Zhonghua has taken timely measures to enhance its capacity to resist risks. It has joined the world’s leading large shipbuilding company by continuing research and development of high-tech and high value-added products, such as thin film type LNG ships and 8530TEU container ships.
Inland-river ships newbuilding boom again
According to the data, the number of vessel under construction on the inland river has already exceeded 150 units, most of them are 500-2000ton dry cargo ships.Due to the explosive expansion of shipbuilding business on inland river, some shipyards are even not able to start the construction, and large number of order-receipts at shipyards are for inland river vessels. The re-emergence of the prosperity in Shipbuilding industry in Yangzhou is mainly due to the sharp drop in market price of steel products followed by international financial turmoil. The price gap over the four months from August till November 2008 has exceeded 50% of the peak price. Some shipowners were not able to place shipbuilding orders due to the price rise after they have obsoleted small tonnage vessels last year, the rapid decline in steel price have cut down the inland river vessel prices and it led to shipbuilding order boom.
Hyundai delivers first CSR VLCC
Hyundai delivers first very large crude carrier (VLCC) built to the industry’s new Common Structural Rules (CSR) for Antwerp-based Euronav NV. The 318,000dwt Olympia (pictured), constructed to Lloyd’s Register class, is the first of two sister-ships being built by Euronav at HHI to advanced environmental protection and safety standards for deployment in the demanding oil transportation industry.
“As the first VLCC built in Korea to CSR, Olympia is a milestone in the drive towards the construction of ever-safer tankers,” says Marinos Syrigos, site manager for Euronav Ship Management (Hellas). “We are certainly proud of having undertaken a key role - together with Lloyd’s Register and Hyundai - in such an important project.” Euronav’s management have committed to maintaining 'green passports' for Olympia and her sistership, Antarctica, assuring that the materials used and installed on the vessels during the owner’s possession are recorded, demonstrating their commitment to the environment. This record is ultimately critical to the safe scrapping of the vessels at the end of their trading lives. They have also selected a higher standard of bridge layout and visibility and achieved the requirements of NAV1 notation from Lloyd's Register to improve the safe operation of the vessel, choosing advanced technical features which are expected to prove particularly valuable in the increasingly congested waters of the world’s major trade lanes. According to Lindsay Butler, the project manager for Lloyd’s Register Asia, the delivery of the Olympia has ushered in the next generation of tankers from Korean shipyards, ships built under CSR rules that offer the technical advances and innovation required by the industry and society at large. “This robust ship has raised the standards by increasing the requirements for strength and durability and by developing transparent requirements for fatigue assessment and corrosion, maintaining a direct link between design and the anticipated operational demands throughout all phases of her construction,” Butler says. “Euronav is demonstrating their commitment to the industry by offering the services of a ship with our Green Passport and Environmental Protection notations. They combined those features with a hi-tech bridge layout, completing the package of a robust, environmentally friendly ship with advanced operating features.” The new Common Structural Rules, released in 2006 after development by the major classification societies in consultation with the industry’s leading ship owners, builders and design houses, have triggered a wave of new designs from the world’s shipyards. The Olympia has a length of 319mtr, a breadth of 60mtr and a moulded depth of 27.8mtr, with engine power of 29,340 kW. According to the Lloyd's Register - Fairplay database, the Lloyd Register orderbook in Korea comprised 435 vessels, or 30.9m gross tons as of September 30.
50% of bulker order cancel
Half of the dry bulk newbuilding deliveries in 2010 are in doubt because of a lack of owners’ finance and unrealistic promises from yards to deliver on time, a leading investment bank has warned.
In 2007, shipowners placed $90bn in dry bulk vessel orderings, more than the previous nine years combined, according to the latest research note by Macquarie Research Equities. But in the past three months, dry bulk shipping rates have collapsed and owners have found it difficult to obtain finance to make payments for their vessels on order. Shipyards took so many orders last year that they were unlikely to be delivered on time, Macquarie said. As a result, Macquarie warned that as much as half of the planned deliveries in 2010 were in doubt. “However, we note that both of these themes would have been an issue even without the deepening of the credit crisis over the past three months,” Macquarie said. In 2010, Macquarie estimated that 108.5m dwt of vessels were planned for delivery. This has now been revised down to 65.1m dwt. There is typically a two-year lag between the increased freight rates and increased deliveries of vessels. As such, fleet growth was expected to continue to accelerate into the middle of 2010, according to Macquarie. “However, looking at previous cycles and the two years lag for supply to diminish, this would imply that much of the mid-2010 deliveries would be in jeopardy, based on previous responses. “One reason for this is that it is likely that for many of these vessels, no more than 20% was put on deposits and only limited expenditures have been made by the yards. “Given that vessel values have fallen well below construction cost even after taking into account the 20% deposit, many of these ships will not be made,” Macquarie said. Macquarie estimated that only 23% of the dry bulk order book has received any further payments, beyond the first down payment. Furthermore, more than 10% of orders were estimated to not have paid deposits. “We expect close to 100% of all orders without a deposit to be cancelled or renegotiated,” Macquarie said. Macquaries said that $46bn worth of finance was needed in 2008, $66bn in 2009 and $31bn in 2010. This assumed that 80% of the vessel investment is financed by debt and 20% by equity. Macquarie said it had visited 15 shipyards in China over the summer and found widespread problems with cancellations. Of those yards, 11 had reported cancellations with shipowner financing the main issue. None of the yards claimed to have had any cancellations after the first down payment. However, Macquarie expected that the situation had since deteriorated substantially. In 2008, yards were expected to deliver over 30m dwt of dry bulk vessels, but have only delivered around 18m dwt through to the end of October Macquarie said. Of the Chinese yards visited in the summer, 80% were experiencing delays in delivering on time, Macquarie said. The primary cause for delays was a lack of shipbuilding experience and technology for smaller yards, while larger yards cited a shortage of ship components as the constraint. Macquarie said that the yards credible was now the main issue, which was over and above the ship financing issues. “In other words, even for the ship owners that are able to deliver funding for vessels, will the shipyards themselves be able to deliver? We think not,” Macquarie said.
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