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29 March 2023 - Year XXVII
Independent journal on economy and transport policy
09:20 GMT+2
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FORUM of Shipping
and Logistics


The Shipbuilding market in 2000 (5)


Europe

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A number of factors may have contributed this year to the increase of sales by European shipyards compared with 1999: u the appreciation of the dollar against the euro by about 20 % since the beginning of year up through October 2000 in a market largely dominated by US dollar transactions even if the euro seemed to appreciate slightly by the end of the year,
  • the return of stronger economic growth in Europe,
  • the rise in freight rates,
  • the saturation of orderbooks in Asian shipyards by the middle of the year, which pushed a number of shipowners to Eastern European shipyards (Poland and Croatia) or to order in German yards to benefit from earlier delivery dates or from prices which had been made more competitive by the appreciation of the dollar,

the often announced end of subsidies to European Union shipbuilders appears this time to have finally now arrived and seems to have motivated some owners and shipyards into taking the opportunity of signing newbuilding contracts.

All of the above factors have had an impact in year 2000. However, the demand for specialised vessels was lower in 2000 for chemical tankers, ro-ro's, ferries and cruise ships than in 1999. These specialised vessels constitute the core of European Union shipbuilding. Despite this, the orderbook passed the 8 million gt mark, to reach 8.7 million gt in the fourth quarter. 

In global market share terms European Union shipbuilders now stands at 12.3 % down from a 13.3 % market share in 1999.

 The European Union shipbuilders have criticised their counterparts in Korea for price dumping and brought their grievances to the EU authorities in Brussels and thereby formalised the complaint that Korean shipbuilders have financed their expansions (which contributed to the over-capacity which has caused the reduction of prices) by incurring massive debt. According to the arguments put forward by EU shipbuilders, much of the Korean debt will either never be repaid or be partly forgiven due to the support from IMF and such debt forgiveness is seen as a public support to companies which would have gone bankrupt otherwise. 

The EU authorities commissioned a study of the problem which, according to the findings of the study, claims that the Korean shipbuilders are engaged in price dumping. 

The Korean shipbuilders have retorted that their success was simply the result of the depreciation of their currency, the improvement of the productivity as well as their purchasing power. The Koreans have also stated that the main goal of the European Union shipbuilders in this dispute was to obtain a continuation of EU subsidies to the shipbuilding industry beyond 2001. 

As a matter of fact, Europe, as planned, decided to end subsidies as of 31st December 2000. 

In their latest report the European Council has revealed the average amount spent, as of 1998, in subsidy per employee in the shipbuilding industry was 28,000 Euros, compared with only 1,113 Euros per employee average in all other EU industry. Under these conditions it is not surprising that Europe's politicians have decided there are better ways to spend the taxpayers money. 

It is on the other hand just as legitimate to question if the taxpayers money which comprises the IMF funds was well spent at a time of crisis, without demanding that Korean shipbuilders reduce capacity, as had been the case of Europe's shipbuilding industry, as the price to be paid for direct or indirect subsidies.

In any event, European shipbuilders will have to take orders for newbuildings without the benefit of subsidy from the start of 2001. Even if the markets for European and Asian shipbuilders are somewhat different, there are certain segments they share in common, in the containership sector for example in Germany, but also in Spain and Italy, all countries which were in firm disagreement with the decision in Brussels to end subsidies. These shipyards risk to encounter enormous difficulties to obtain new orders without subsidies as the prices of newbuildings still remain below those of pre-1997 Asia crisis. 

The year 2000 demonstrated that Korea could take on 7.5 million of additional gross tons, in less than a year, an amount nearly equal to the entire orderbook in Europe. 

Finally we note that in the implementation of its exit strategy from shipbuilding in Europe, the Kvaerner Group was successful in selling during the course of 2000 the following shipyards: Fjellstrand, Floroe, Govan, Kleven, Leirvik and Mandal. The group is still owning three major shipyards: Kvaerner-Masa, Kvaerner-Philadelphia and Kvaerner-Warnowerft, but disposal of these yards is still a priority as part of Kvaerner's policy of shedding non-core assets.
 

  • France

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The orderbook for French shipbuilders remains stable at about 920,000 gt. 

After the final shutdown of Ateliers et Chantiers du Havre (which delivered their last unit, an unfinished hull to be completed in Croatia by Uljanik) France is left with one large and three small shipyards. 

It was another exceptional year for the Chantiers de l'Atlantique, which took advantage of the ongoing demand for cruise ships. 

Cunard Line, with its order for the 'Queen Mary 2', brought the first newbuilding to Chantiers de l'Atlantique for the account of the world's leading cruise operator, Carnival Corp. The contract for the 'Queen Mary 2' also marked the first newbuilding of a full-fledged transatlantic liner vessel in more than thirty years, and being the most expensive passenger ship ever ordered. 

Other significant successes were achieved, one of which was the contracting of a cruise ship for Japanese owners NYK. This was the first time NYK had signed with Chantiers de l'Atlantique and is one of the few orders placed by Japanese owners in any European shipyard. 

No less significant was the success of obtaining the cruise ship newbuilding order for Mediterranean Shipping Cruises in the face of lively competition from Italian shipbuilders. 

As of today, Chantiers de l'Atlantique has 12 cruise vessels and two naval frigates on order and in the year 2000 has delivered four new cruise ships:

  • the 'R Five', 'R Six' and 'R Seven', cruise ships of 702 passengers to Renaissance Cruises,
  • the 'Millenium', cruise ship of 1,900 passengers to Royal Caribbean Cruises.
R SEVEN
30,277 grt, blt 2000 by Chantiers de l'Atlantique - perated by Renaissance Cruises.
The other shipyard of the group, Alstom Leroux Naval, was successful in taking an order for the account of NEL Lines in Greece :
  • a fast-ferry of 36 knots and 1,000 passengers / 210 cars,
  • and delivered :
  • a fast-ferry of 36 knots and 1,116 passengers, the 'Aelos Express' for Nel Lines,
  • a fast-ferry of 42 knots and 1,000 passengers, the 'NGV Liamone' for SNCM,
  • four 3 680 kW tugs for Les Abeilles S.A..
NGV LIAMONE
12,000 grt-42 k., blt 2000 by Alsthom Leroux Naval - owned by SNCM
 
The shipyard Pirou took orders for:
  • five "long liners" of 55 m for Armement R'unionnais, Mascareignes, Sapmer, le Garrec and Comata,
  • two trawlers of 25 m for Armement Nocca,
  • a trawler of 25 m for Armement Hamon,
  • a 2 000 kW tug for Papeete Port Authorities,
and delivered not less than 20 vessels including:
  • two tuna-seiners, the 'Sterenn' and the 'Cap Saint Vincent', a multipurpose vessel, nine trawlers, six shrimpers, a river passenger ferry and a crew boat.
The shipyard Constructions Mecaniques de Normandie obtained orders for four luxury yachts and one multi-hull yacht, and delivered four fast patrol boats for the Kuwaiti Navy.
 
  • Germany

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With an orderbook of 2.63 million gt (as of the fourth quarter of 2000) Germany maintained the number one rank in European Union shipbuilding, just ahead of Italy. However, for the first time Germany has been overtaken by neighbouring shipbuilders outside of the European Union in Poland. Germany therefore now declines to the number five ranking in terms of gt percentage of the world orderbook. It is of interest to note the four types of vessels that have dominated the German orderbook this year:
  • container vessels, as usual, lead with 39 % of the orderbook (compared with 35 % in 1999),
  • cruise ships advanced to 33 % (against 28 % in 1999),
  • ro-pax orders increased to 16 % (compared to 13 % in 1999),
  • ro-ro newbuildings in Germany remained at 8 % of the orderbook.
Germany, with its strong participation in the containership newbuilding sector did not vote in favour of the ending of subsidies to shipbuilding. In spite of the dynamic participation of German shipowners in this sector, shipbuilders in Germany have seen their market share of the world containerships orderbook declining from 14 % in 1998 down to 6 % in 2000. German shipbuilders can be legitimately worried about their future. If the euro continues to appreciate, it might become difficult for them to maintain even their present level of orders.
 
  • Italy

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With an orderbook of 2.15 million gt, Italy holds the second place ranking in European Union shipbuilding. Three types of vessels dominate Italian shipyards:
  • cruise ships (56 %),
  • ro-pax (25 %),
  • ro-ro's (13 %) which have pushed chemical tankers to the 4th place in 2000.
Fincantieri has decided to utilise additional capacity at a third site (out of the six they control) to the newbuilding of cruise ships and passenger ships. Outside of the construction of cruise ships, Italian shipbuilders are almost exclusively at work for orders placed by Italian shipowners, who nonetheless have been extremely active ordering newbuildings from shipyards outside Italy. Italian shipyards have relied heavily on the "scrap and build" law and thus on the new fiscal law for financial aid to the maritime investment.
 
  • Spain

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The Spanish decided to create a giant state-owned shipbuilding group by combining the nation's civilian and military shipbuilding capacity and re-branding it under the new name "Izar". Izar has taken the activities of two public groups in Spain, those formerly of Bazan in the military sector and AESA in the civilian shipbuilding sector, with the hope thereby of rationalising shipbuilding in Spain and achieving some economies of scale. However to increase their competitiveness, Izar will most likely have to truly attempt to reduce the number of shipbuilding sites in Spain, of which today there are eight, and increase the productivity of those shipyards which will remain. This will not be easy in a country with strong independent regional interests, where each region has its own good reasons to preserve its shipbuilding capacity. Spanish shipyards took few orders in 2000 even with the low euro / USdollar exchange rate making them more competitive than they otherwise might have been. The Spanish orderbook however remained stable at about 797,000 gt. We need to highlight however, the success of the former AESA bringing Spain into the club of shipbuilding nations that are capable of constructing LNG tankers. AESA was successful in signing contracts for three LNG newbuildings of 138,000 cubic meters after competing in an international tender in the face of fierce competition. Two vessels will be built at Bilbao and one at Puerto Real.
 



Shipping and Shipbuilding Markets in 2000

I N D E X

›››File
FROM THE HOME PAGE
ESPO urges EU and European governments to lay out funding schemes for the installation of OPS in ports
Brussels
Satisfaction with the preliminary settlement agreement on the infrastructure for alternative fuels
UIRR recalls that it is possible to develop European intermodal transport and the necessary measures have already been suggested
Brussels
The association agreed with the dismal analysis of the European Court of Auditors ' sector.
Agreed on how to install electric charging stations for cars and trucks on the roads of the EU
Brussels
Preliminary agreement between Parliament and Council also for hydrogen filling stations
Nearly 2,000 workers in the Italian shipbuilding industry paid with irregular pay
Venice
Nearly 2,000 workers in the Italian shipbuilding industry paid with irregular pay
This is an income stream of six million euros, not subject to taxation or contribution.
The WSC against the bill that in the USA would repeal antitrust exemptions to foreign shipping companies
Washington
Foreign maritime monopolies-indicted by Costa Costa-have manipulated the maritime transport sector. Butler : misunderstanding how VSA helps supply chain to work better
BRT and the Italian subsidiary of the Geodis have been placed in judicial administration
Milan
A systematic exploitation of several thousand workers would emerge from the investigation.
Carnival realizes the best wave season ever
Carnival realizes the best wave season ever
Miami
New record bookings of cruises in both the North American and European markets
A new historical record of cruising traffic in Italian ports was expected in 2023.
Fort Lauderdale
A new historical record of cruising traffic in Italian ports was expected in 2023.
According to Cemar, passengers will be 12.8 million, with a 37.6% on 2022 and a 9.2% on the 2019
APM Terminals cooperates with Hateco in the realization of the new container terminal in Haiphong
APM Terminals cooperates with Hateco in the realization of the new container terminal in Haiphong
Two million euros for tax evasion in the logistics and home delivery sector
Trieste
Reported 20 entrepreneurs
Austria's Gebrüder Weiss has inaugurated a new logistics terminal in Tyrol
Reutte / Lauterach
It is located in Reutte, near the border between Austria and Germany
Maersk-SIPG agreement for bunkering of green methanol in the port of Shanghai
Shanghai
Expected supply from ship to ship of the new container ships ordered by the Danish company
ESPO, ships should use cold ironing systems in ports, if available, already before 2030
Brussels
Ryckbost : It is hoped that the requirements for ships related to when to use electricity at berth clarify the matter
ECSA, EU agreement on ship fuel gives strong political signal and provides clear climate goals and guidance for industry
Brussels / Rome
Assshipowners, welcome our main instances
T&E, today's EU decision marks the beginning of the end of dirty fuels in the shipping industry
Brussels
The organisation highlighted the need to prevent the agreed standards from presenting loopholes
Agreement of the Parliament and of the EU Council on the use of fuels for decarbonisation of shipping
Agreement of the Parliament and of the EU Council on the use of fuels for decarbonisation of shipping
Brussels
From 2034, the share of renewable fuel will have to be more than 2% percent. Emissions will have to be reduced by 2% percent by 2025 and by 80% percent by 2050. From 2030 container ships and passenger ships will have to use ground electricity in major European ports
Subscribed to the contract to sell the yards Hellenic Shipyards to the Greek shipowner Prokopiou
Subscribed to the contract to sell the yards Hellenic Shipyards to the Greek shipowner Prokopiou
Athens
The tender had been won with an offer worth 62.5 million euros.
ESPO presses why the ports that play a significant role in the EU's energy supply are also admitted to the TEN-T network
Brussels
According to the association, it is necessary to also take into account their role in the acceleration of the spread of renewable energies
In 2022 OOIL achieved record economic results
Hong Kong
In 2022 OOIL achieved record economic results
Drop in performance in the second half of the year
In 2022 French ports handled 293.7 million tonnes of cargo (+ 5.1%)
Ports
The figure is -6.0% percent lower than that of the pre-pandemic year of 2019.
Grimaldi signs agreement for the 67% acquisition of the Igoumenitsa Portuale Authority
Athens
Grimaldi signs agreement for the 67% acquisition of the Igoumenitsa Portuale Authority
"Our goal is to make the Greek airport realize its full potential for the benefit of all stakeholders, from shipping, transport and tourism to the local community," said Emanuele Grimaldi, who is also the first person to be able to make the Greek government.
Fedespedi, in 2022 container traffic in Italian ports increased by 2.4%
Milan
Overall decline of -1.0% of volumes in other container ports in the Mediterranean
In 2022 the port of Hamburg recorded a new record of goods from and for Austria
Hamburg
They amounted to 6.3 million tonnes (+ 12%)
Guidelines for the safe transport of lithium-ion batteries in containers
Guidelines for the safe transport of lithium-ion batteries in containers
London
They have been published by CINS, International Group of P&I Clubs, ICHCA and TT Club
Strong criticism of the Court of European Accounts to EU policies for the development of intermodal transport
Luxembourg
Values-objective to increase the share of sustainable modes of transport these are termed unrealistic
Thursday in Livorno a workshop on autonomous navigation
Livorno
Event organized as part of the 5G Maritime Autonomous Surface Ship project
In 2022, China's Sinotrans reported record profits despite a -12.5% percent decline in revenue.
Beijing
In 2022, China's Sinotrans reported record profits despite a -12.5% percent decline in revenue.
The reduction of business volume has been generated in the segments of maritime shipments and e-commerce
In 2022, short sea shipping in Spain experienced a slight decline of -0.4% percent.
Madrid
In 2022, short sea shipping in Spain experienced a slight decline of -0.4% percent.
The only international shipping of ro-ro cargoes marked an increase of 8.0% percent (for the first time since the 2016 percent drop in traffic with Italy)
Pimlico Shipping (Brothers Cosulich) buys a revamped
Genoa
The ship, of 7,967 tpl, will be rented to bare boat from the Argo Shipping
SAILING LIST
Visual Sailing List
Departure ports
Arrival ports by:
- alphabetical order
- country
- geographical areas
Giorgio Bucchioni has passed away, a reference point of breaking and national portions.
Giorgio Bucchioni has passed away, a reference point of breaking and national portions.
The Spezia
Among the institutional assignments, he was Chairman of the Port Authority of Spezia and Confindustria La Spezia
Liberty Lines orders three more monocarena naval vehicles at Spanish shipyard Armon
Belrose
Liberty Lines orders three more monocarena naval vehicles at Spanish shipyard Armon
They will add to the nine already commissioned
Ceremony of laying of the keel of the Silver Ray by Silversea Cruises
Papenburg
The luxury cruise ship is under construction at Meyer Werft
Launched in China the first of two LNG Small Scale & Bunker ships for Fratelli Cosulich
Genoa
Will be taken in delivery in September
The CDA of Interporto Padova unanimously approved the draft budget 2022
Padova
Profit after taxes in line with that of the previous financial year
In Genoa, a centre for the development of new technologies for decarbonisation of shipping has been inaugurated.
Genoa
CapLab will be managed by Ecospray Technologies and the DICCA of the University of Genoa
Collaboration Agreement between the AdSP of the South Tyrreno and Ionian Seas and the University of Calabria
Cowithout
The agreement covers several areas of activity and expertise
In 2022 the transits of trucks through the Swiss Alps decreased by -1.7% percent. Stagnation of rail transport
Bern
In 2022 the transits of trucks through the Swiss Alps decreased by -1.7% percent.  Stagnation of rail transport
Still far away the goal of the transfer of the loads from the road to the rail
In the only fourth quarter of 2022, HHLA Group revenues grew by 4.9%
Hamburg
Operating profit fell by -8.8%
Touax closes 2022 with record revenue
Paris
Expected in 2023 normalization of the container market
E-fuel should only be reserved for air and sea transport
Rome
It highlights an analysis of Transport & Environment, which considers them not useful to decarbonisation of road transport
Agreement between five international organisations to increase the safe transport of cargo in containers
London
Memorandum of understanding subscribed by CINS, CHIRP, COA, ICHCA and SMDG
The port of Livorno initiates an agreement with the Uruguayan ANP for the development of traffics, in particular of forest
Livorno
The port of Livorno initiates an agreement with the Uruguayan ANP for the development of traffics, in particular of forest
In 2022, the labronic climber handled 2.13 million tonnes.
Rixi reassures on the implementation of the sea rollover of the Fincantieri shipyard of Sestri Ponente
Genoa
Rixi reassures on the implementation of the sea rollover of the Fincantieri shipyard of Sestri Ponente
MIT will launch the discussion with Italian Railway Network for moving the railway line
Maersk Air Cargo inaugurates an aeromerci service Europe-China
Copenhagen
Maersk Air Cargo inaugurates an aeromerci service Europe-China
It is the first air link for the transportation of goods between Denmark and Asia
In 2022, rail transport to and from the port of Livorno grew by 35.8%
Livorno
Drop of -35.4% in the Piombino stopover
In February, drop in freight traffic in the ports of Algeciras and Barcelona
Algeciras / Barcelona
Decreases of -12.3% and -11.6% respectively
PSA stores 2022 with record financial performance
PSA stores 2022 with record financial performance
Singapore
Revenue up 71.2%
PORTS
Italian Ports:
Ancona Genoa Ravenna
Augusta Gioia Tauro Salerno
Bari La Spezia Savona
Brindisi Leghorn Taranto
Cagliari Naples Trapani
Carrara Palermo Trieste
Civitavecchia Piombino Venice
Italian Interports: list World Ports: map
DATABASE
ShipownersShipbuilding and Shiprepairing Yards
ForwardersShip Suppliers
Shipping AgentsTruckers
MEETINGS
Thursday in Livorno a workshop on autonomous navigation
Livorno
Event organized as part of the 5G Maritime Autonomous Surface Ship project
On April 18 Assiterminal will be confronted with politicians and practitioners on the challenges of portugal
Genoa
Meeting at the headquarters of the Federation of the Sea in Rome
››› Meetings File
PRESS REVIEW
Port concession saved Nigeria's economy N3.9tr - Haastrup
(Vanguard)
Can the return of international cruises bolster Japan's beleaguered tourism industry?
(The Japan Times)
››› Press Review File
FORUM of Shipping
and Logistics
Relazione del presidente Daniele Rossi
Napoli, 30 settembre 2020
››› File
- Via Raffaele Paolucci 17r/19r - 16129 Genoa - ITALY
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Editor in chief: Bruno Bellio
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