MM Report 30 - Year 2012 PDF

SHIPBUILDING MARKET MONITORING
Report N° 30 – March 2013
HEADLINES
Shipbuilding Market:
 In 2012 new orders decreased by 20% compared to 2011 to 24.7M

CGT and represented only 50% of the 2012 production (48M CGT)
 Fleet growth continued as demolition sales (35.3M CGT) compen-
sated only 37% of of completions (95.3M CGT)
 Newbuilding prices fell back to the level of 2003/04.
 China leads the market with 41% market share on completions and
35% on new orders
 EU 27’s shipyard activities slightly declined in conventional markets
but were successful in specialized market segments like yacht build-
ing and offshore-wind
News:
 EC and the industry launch LeaderSHIP2020 strategy (46)

 Yard capacity has shrunk by a third in the past five years but it is still
not enough to balance fleet supply and demand (41)
 2012 hit the record year for demolitions with a reported 57.5m dwt
(1,266 vessels) sold for scrap, which increased by 34.6% year-on-
year. (44)
 The Governments of China and Korea support shipyards further and
China starts restructuring of the shipbuilding industry. (1, 3, 15)
Restriction of use and Copyright notice
This report is intended for internal circulation only within the member-
ship of CESA/ SEA EUROPE.
Due to copyright restrictions from the data sources, please contact CESA/SEA
EUROPE and ask for prior permission for any use of the information contained in
this publication.
SEA EUROPE SHIPBUILDING MARKET MONITORING
REPORT 30 OF 01-03-2013
I. SHIPBUILDING STATISTICS
Table 1.1 – Summary of activity in different regions
2005 2006 2007 2008 2009 2010 2011 2012
Overview 2012
New Orders Market Share (in % of CGT1)
New orders market shares
CESA 1 18.3 9.4 6.4 4.9 3.4 6.4 5.9 7.5% for CESA countries have in-
China 15.3 23.3 33.9 32.3 43.0 41.7 27.1 34.6%
creased almost 1.5 points
Japan 21.8 19.5 11.9 18.2 23.4 13.9 13.4 17.8% comparing to 2011, despite
S. Korea 35.3 38.2 38.7 34.4 20.4 30.9 44.2 28.8% the total tonnage ordered is
Vietnam 0.5 1.5 0.9 1.8 1.3 0.9 0.5 0.7% very low. South Korean
India 0.8 0.8 1.4 1.2 0.6 0.5 0.1 0.7% yards have lost significant
Brazil 0.1 0.2 0.9 0.7 0.6 0.3 0.4 3.5% shares passing from the 44%
Russia 1.2 0.2 0.2 0.3 0.2 0.5 0.8 0.3% last year to a 29%. Contrary,
Turkey 2.1 1.3 1.1 1.0 1.1 0.4 2.4 0.8% China has become the
Philip- 1.0 leader, increasing its new
0.5 1.5 1.9 1.2 1.0 1.9 1.0%
pines orders market shares from
RoW 4.1 4.2 2.8 4.0 4.9 2.4 3.1 4.3% 27.1% in 2011 to 34.6% in
World 100 100 100 100 100 100 100 100% 2012. Japan has also seen its
EU27 17.4 8.6 5.8 4.0 2.7 5.9 5.2 6.3% market shares grow in 4
Completions Market Share (in % of CGT) points. However, based on
CESA 1 13.1 13.6 14.1 11.5 8.8 7.7 4.8 4.6% contract values Korea is still
China 14.8 15.1 19.2 21.6 28.2 36.5 38.6 41.1% the market leader with usd
Japan 28.9 28.0 25.6 23.3 21.7 19.0 17.9 17.5% 30b, constituting a market
S. Korea 34.5 34.8 32.1 34.7 32.6 28.9 31.2 27.9% share of 30% (Clarkson).
Vietnam 0.4 0.5 0.5 0.6 0.8 1.1 1.0 1.4%
India 0.3 0.2 0.5 0.3 0.4 0.3 0.4 0.6% Due to the low demand dur-
ing the last years, CESA
Brazil 0.3 0.2 0.2 0.2 0.3 0.2 0.3 0.4%
shipyards have halved their
Russia 0.5 0.7 0.6 0.4 0.3 0.3 0.3 0.3%
production since 2008 to
Turkey 1.2 1.3 1.9 2.0 1.6 0.9 0.9 0.5%
nowadays in absolute terms
Philip- 1.2
0.6 0.5 0.6 0.7 0.7 1.2 1.9% and market shares. China
pines
continues leading the com-
RoW 5.3 5.1 4.8 4.7 4.8 3.9 3.4 3.8%
pletions market with a 41.1%
World 100 100 100 100 100 100 100 100%
of the market shares and
EU27 12.1 12.5 13.1 9.4 8.2 7.2 4.3 4.2%
also in absolute terms with
Orderbook Market Share (in % of CGT)
1927 vessels completed last
CESA 1 15.1 12.9 9.4 7.2 6.1 5.0 5.2 5.8%
year. Japan maintains 17.5%
China 15.0 19.7 28.3 32.6 34.8 38.2 36.7 35.9%
and Korea drops by 3 points
Japan 25.7 22.5 17.3 16.1 15.7 15.5 14.5 14.1% to 27.9%.
S. Korea 35.7 35.7 35.7 33.8 30.5 30.6 31.9 30.7%
Vietnam 0.5 1.1 1.2 1.6 1.5 1.5 1.6 1.4% The orderbook market
India 0.6 0.8 1.1 1.3 1.5 1.5 1.5 1.3% shares remain stable com-
Brazil 0.2 0.2 0.5 0.7 0.8 1.0 1.5 2.9% pared to last year’s figures,
Russia 0.9 0.6 0.4 0.3 0.4 0.4 0.5 0.5% with very small changes for
Turkey 1.4 1.4 1.3 1.2 0.9 0.8 0.7 0.9% big producers. Brazil has al-
Philip- most doubled its market
0.4 0.8 1.4 1.4 1.8 2.1 1.7 1.3%
pines shares comparing to 2011,
RoW 7.0 9.5 6.6 5.7 6.3 3.5 4.4 5.2% passing from 1.5 to 2.9%.
World 100 100 100 100 100 100 100 100%
EU27 13.7 11.9 8.7 5.5 5.7 4.6 4.8 5.4%
Data source: IHS Fairplay
1Forabbreviations and definitions
please consult the Glossary page
32
PAGE 3 OF 43
REPORT 30 OF 01-03-2013
Figure 1.1 – Summary of activity in CESA shipyards

CESA shipyards continue with low orders and activity, still at the low level of 2011. The
orderbook fell by about 10% to 5.2M CGT.
Figure 1.2 – Summary of activity in Chinese shipyards

Chinese orderbook has experienced a decrease of 9M CGT compared to 2011. How-
ever, due to the drop of South Korea’s new orders China took the lead in the new orders
market with 8.55M CGT over the 7. 11M CGT of its Korean competitors.
PAGE 4 OF 43
REPORT 30 OF 01-03-2013
Figure 1.3 – Summary of activity in Japanese shipyards

Japanese orderbook continues falling and the new orders have experienced a slight
raise compared to 2011
Figure 1.4 – Summary of activity of South Korean shipyards

The lack of demand is also reflected in South Korean yards, which have seen their new
orders halved in terms of CGT compared to 2011.
PAGE 5 OF 43
REPORT 30 OF 01-03-2013
Figure 1.5 – Summary of activity of EU-27 shipyards

EU 27’s shipyards maintained the level of new orders of the last year, the orderbook is
reducing and completions have also decreased. Comparing to the last years the activi-
ty and contracting continues falling without any sign of recovery
Figure 1.6 – Summary of activity of World shipyards

The world orderbook continues at pre-boom levels standing at a total of 5550 vessels of
a cumulative 88.67M CGT, a decline of 23M CGT. 1977 new vessels were contracted in
2012 accounting 24.7M CGT, 6M CGT less than in 2011.
PAGE 6 OF 43
REPORT 30 OF 01-03-2013
Figure 1.7 – New Orders by Main Shipbuilding Areas
The shares of new orders remain stable compared to 2011 except for South Korea, who
has contracted half of last year’s volume of new vessels. China is the leader in new con-
tracts. Due to the overcapacity situation in the mass market, gas carriers, containerships,
bulk carriers and tankers are not being ordered. Non cargo and passenger ships are
seeing a higher demand than in the last years.
Figure 1.8 – New Orders by Main Ship Types
PAGE 7 OF 43
REPORT 30 OF 01-03-2013
Figure 1.9 – Completions by Main Shipbuilding Areas
Overall shipbuilding production stands at a high level with 48M CGT delivered in 2012, a
bit lower than last two years levels. Compared to the last two years non significant
changes can be seen regarding the vessel types or the shipbuilding areas.
Figure 1.10 – Completions by Main Ship Types
PAGE 8 OF 43
REPORT 30 OF 01-03-2013
Figure 1.11 – World Orderbook by Area
The world orderbook continues decreasing over the last 4 years as there is no demand
for new vessels and deliveries do not slow down. Compared to 2011 the orderbook has
been reduced in 20M CGT. The European orderbook remains low due to the financial
crisis that affects the specialised markets that it serves. Non cargo vessels demand has
slightly grown respect last year, giving some breath to the struggled shipyards of Asia
and Europe, however for 2013, many yards are expected to run out of orders as they
don’ have vessels with a delivery date past the end of 2013.
Figure 1.12 – World Orderbook by Ship Types
PAGE 9 OF 43
REPORT 30 OF 01-03-2013
Figure 2.1 – Monthly Newbuilding Price Index
Source: CESA based on Clarkson’s and x-rates.com data

Clarkson’s ship prices index continues dropping as a result of lack of demand for cargo
ships, making the yards face a complicate situation of fierce competition for low in-
comes. For the Japanese and Chinese yards the effect of falling prices is more agoniz-
ing due to exchange rate developments of the yen and yuan.
Figure 2.2 – Evolution of Tankers Time Charter Rates
Data Source: Drewry

Despite a small recovery on the prices for VLCCs freight rates for tankers are still at their-
lowest levels of the last decade, hardly covering the operating costs.
PAGE 10 OF 43
REPORT 30 OF 01-03-2013
Figure 2.3 – Evolution of Bulk Carriers Charter Rates
Data source: Drewry

The rates for bulk carriers and containerships remain at very low levels without any signif-
icant signal of recovery.
Figure 2.4 – Evolution of Containers Time Charter Rates (for 1 year)
Data source: Drewry
PAGE 11 OF 43
REPORT 30 OF 01-03-2013
Figure 2.5 – Bunker Fuel and crude Oil prices
Data source: BunkerWorld.com and World Bank

Two years after the uprising in Egypt that ignited insurrection across other Arab states
and pushed up the price of oil due to uncertainty over global supply, bunker prices re-
main in historical records, higher than $600 per tonne, hampering shipowners’ efforts to
reduce costs. Due to the low earnings for shipowners more and more vessels are being
sold for scrap. During 2012 1266 vessels of almost 35mln GT were sold for demolition,
overpassing the highest levels ever. Bulkers continue being the most sold vessels for
scraping followed by VLCC.
Figure 2.6 – Ship Scrapping
Data source: Clarksons
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REPORT 30 OF 01-03-2013
Figure 2.7 – Materials Price
Data source: MEPS.co.uk
The European price of the hot rolled plate fell from usd848 in April to usd673 in Novem-
ber 2012. Despite Asian price is still cheaper, standing at usd660 and therefore Asian
yards continue having the competitiveness advantage over the Europeans, both prices
are closest than ever in the last 2 years and the competitive advantage has been re-
duced.
Figure 2.8 - Exchange Rates evolution
Data source: X-Rates.com
The exchange rate of the main shipbuilding nations’ currencies against the dollar con-
tinue to fluctuate with the exception of the Chinese yuan, making financial planning of
the yards more difficult in a period already challenging.
PAGE 13 OF 43
REPORT 30 OF 01-03-2013
GENERAL OBSERVATIONS
CRISIS EFFECTS AND GOVERNMENTS’ ACTIONS
CHINA
1. Beijing supports shipyards further
China's government may unveil fresh measures to support the country's shipbuild-
ing and aerospace industries, China Securities Journal reported Monday. The
central government will likely extend preferential tax and credit policies to key
domestic shipbuilders and makers of aircraft engines, the report said. Chinese
ministries are drawing up plans to stimulate the two sectors following studies by
the Ministry of Industry and Information Technology and the State-owned Assets
Supervision and Administration Commission late last year. Particularly Chinese
shipbuilders had taken a big blow last year as newbuilding orders fell dramatical-
ly and ship prices plummet.
Asiasis-January 17, 2013
2. China’s surplus value
The state-owned organ China Securities Journal has quoted anonymous gov-
ernment sources saying that the “relevant authorities have been devising the
plan for shipping industry for the last three years [2013-2015] of the 12th five-year
[plan], which will include pro-shipping enterprises policies to provide necessary
support in fiscal, taxation and financing terms”.
Losses at China’s state shipowners aside, it is shipbuilding that faces the greatest
peril. The target set out in 2009 for the 12th five-year plan on the Development of
Shipping Industry called for the export value of ships built in China to exceed
$80bn. Although a dollar figure has not been released for 2012, the accumulated
export value of ships for the first 10 months was $33.6bn, down 5.9% from the pre-
vious year, according to South Korea’s Institute for International Trade.
China’s yards have less than a year of order backlog, according to Barclays.
China Securities Journal reported on January that existing orders for Chinese
shipbuilders fell 29% year on year at the end of 2012 to 107m dwt. The cause is no
mystery. Most Chinese shipyard capacity is designed to produce dry bulk ships,
and demand has languished in the poor rates environment bequeathed by de-
liveries of orders inked before the global financial crisis. The government sees off-
shore and higher value shipbuilding as a road to improvement and various au-
thorities have discussed the possibility of consolidating shipyards much in the way
the steel industry was consolidated in an early capacity crisis.
Barclays makes an interesting point about shipyard capacity in China: the gov-
ernment has a desire to maintain some of the shipyard capacity for economic
reasons. A major reason for the boom in shipping rates from 2003-2008 was that
the strong increase in China’s demand for commodities came more quickly than
ships could be built to deliver the goods. That increased the cost to the nation of
delivering iron ore, coal and other commodities essential to development.
Looked at this way, the main motive for China’s planners is not shipyard profitabil-
ity but lower cost of transport, which would imply that finding a way to keep
many of them alive is in the nation’s interest — even if the market in the near fu-
ture does not call for the ships that these yards could produce at maximum out-
put. There are several approaches that the government might take, and some
have emerged already, such as plugging the finance gap left by European
banks by ship financing through bank loans to encourage foreign shipowners to
build new vessels in China’s yards. Another solution might be government-
directed orders that would include high-value ships such as liquefied natural gas
vessels and traditional commercial vessels. Although a subsidy is a subsidy, when
— and if — it comes with the helping hand of international investors in equity
markets, it looks a lot less like state protection.
PAGE 14 OF 43
REPORT 30 OF 01-03-2013
Lloyds List - 22 January 2013
3. Beijing boosts reorganization
Chinese government is putting all its strengths in enhancing competitiveness of its
major industries through M&As. The Ministry of Industry and Information Technolo-
gy of China (MIIT) with 11 government department, including the National Devel-
opment and Reform Commission (NDRC), etc., announced its plan for mergers
and acquisitions in major industries on January 22. The plan regarding shipbuild-
ing industry mentions, it aims that China's Big10 shipbuilders would deliver more
than 70% of overall ships delivered from China, at least five Chinese shipbuilders
would be ranked in Global Top 10 shipyards through large-scale M&As. Also, the
plan is to promote five to six companies as offshore plant equipment manufac-
turers. To achieve the plan, major shipbuilders would aggressively carry out M&As
regardless of differences in region and industry and the government would bol-
ster development of leading companies with specific competitiveness. Moreover,
the government would help shipyards to improve capacity through M&As and
small-and-medium sized shipbuilders to have their own characteristics and brand
quality.
Asiasis - January 24, 2013
4. Merger of four Chinese State Shipbuilding Corp yards into two shows that even
the rising might of the country’s economic and political power cannot hold
back the market, with shipowner clients set to benefit from the yards’ greater
efficiency. Mergers forced by price pressure driven by overcapacity are noth-
ing new. Yet it is much less common in state-controlled economies than in the
largely free markets of global shipping. China’s state-owned shipyards now
have to face up to the realities of the world in which they work; managing the
demands of commercial shipowner clients while continuing to deliver official
policy goals. The saga follows a well-worn path for the shipbuilding industry in
many parts of the world over the past four decades. Overexpansion of capaci-
ty in periods of high demand have triggered intense price pressure, then mer-
gers, and in some cases, ultimately, closure. Shipowners may rightly be initially
sceptical of receiving the benefit of such yard fusion. If yards streamline and
slim down their sales forces, prices can only move one way — or at least stop
falling. And who wants that? Such a crude view would be to overlook the more
fundamental advantages of increased technical and labour efficiencies of en-
larged yards’ greater scale. More efficient facilities build not only cheaper ships,
but more sophisticated, higher-quality vessels that have greater long-term val-
ue to their owners. Arguably, those benefits can outweigh the basic price tag.
Just look at the price-value performance of ships built in Japan in recent years
for some of the most hard-nosed owners in the business. Also, don’t forget the
tankers built by energy majors in many territories that are often premium-priced
due to their high specifications to give the added security their owners demand.
CSSC’s mergers are a sign that China’s shipbuilding sector is now coming of
age. Having acquired a powerful position in the global market in the past dec-
ade it is now setting about securing its long-term role by driving efficiencies and
standards to dispel the question marks that have tarnished its reputation.
Tradewinds - 20 February 2013
5. JES sets up credit facility with Minsheng
Company owned by local government provides credit guarantee
Singapore-listed, China-based shipbuilder JES International has established a
credit facility of $15m with China Minsheng Banking under guarantee from a
company owned by the local government. According to a regulatory filing from
JES, the facility will replenish its working capital and will not have a material im-
pact on net tangible assets or earnings per share this year. JES executed a guar-
antee and indemnity in favour of Huading Investment and Construction in
PAGE 15 OF 43
REPORT 30 OF 01-03-2013
Jingjiang City, a company owned by the local government that provides the
credit guarantee to Minsheng for the facility. JES’ cash reserves fell 77% from late
2011 to Yuan227m ($36.3m) at end-September,despite a 16.5% net gearing ratio.
The yard forecast a full-year loss on a net basis for 2012, having posted a profit of
Yuan202.9m in 2011. In December, the local public security force and govern-
ment intervened after hundreds of JES subcontracted labourers downed tools.
The yard blamed the spat on the failure of subcontractors to pay the workers’
wages. However, according to China Labour Bulletin analyst Jennifer Cheung,
the subcontractors were waiting for JES to pay them, which meant they could
not afford to pay the temporary workforce.The dispute was resolved after JES
paid the temporary workers on the subcontractors’behalf, Ms Cheung said.
Lloyd’s List 05.02.2013
EUROPE
6. German shipping industry heads for massive structural changes
Economic recovery will come too late for many shipowners, warns Widdows
Most people reckoned that the KG system was finally dead. The Hamburg ship-
owners are at the sharp end of massive structural changes that are hitting the
whole shipping industry. Mr Widdows said that about three times the capacity
that is already idle would need to be put out of the market to raise freight rates.
Liner companies should co-operate in this effort. Liner operators have to grow
more comfortable with asset procurement; mere slot-sharing agreements were
not enough, Mr Widdows said. Carriers face a dilemma. They need new, more
fuel-efficient vessels to cope with high bunker costs. At the same time, they need
to get rid of their old and inefficient vessels, which are still too new to be
scrapped. But the last thing the market needs is additional tonnage and fresh
newbuilding orders. Mr Widdows warned that this dilemma could only be tackled
in a co-operative approach. “As significant growth in capacity in the short term
would be damaging to a recovery, it is a good thing that shipping companies
are somewhat protected from themselves as there is almost no financing availa-
ble. The key would be how the industry dealt with the old ships.
Lloyd’s List – 02 March 2013
7. Fincantieri completes the acquisition of STX OSV
Fincantieri, through its wholly owned subsidiary Fincantieri Oil & Gas S.p.A., has
successfully completed the acquisition of 50.75% of STX OSV from STX Europe, at a
price of SGD 1.22 per share, totalling approximately Euro 455 million* (approxi-
mately SGD 730 million). In compliance with the rules of the Singapore Code on
Take-overs and Mergers, Fincantieri Oil & Gas S.p.A. has also announced its firm
intention to make a mandatory unconditional cash offer for the remaining shares
at a price of SGD 1.22 per share. The offer must be kept open for a minimum of 28
days from the date on which the offer document which sets out the terms and
conditions of the mandatory unconditional general offer is dispatched by Fin-
cantieri Oil & Gas S.p.A., which is expected to occur within the next two or three
weeks. The total value of the transaction, including both the acquisition of the
50.75% stake and the mandatory unconditional cash offer, will amount to approx-
imately Euro 900 million* (approximately SGD 1,450 million). It will be financed
mainly from Fincantieri's internal resources and with a syndicate loan provided by
a pool of banks (Banca IMI, BNP Paribas - Italian branch, Carige, Unicredit) and
by Cassa Depositi e Prestiti as a lender guaranteed by SACE. This acquisition
marks Fincantieri's entry into a market segment complementary to its current ones.
With 21 shipyards in 3 different continents, nearly 20,000 employees and revenues
of Euro 4 billion, Fincantieri Group will double its size to become the fifth largest
shipbuilder worldwide behind four Korean peers, and the only Western producer
capable of competing with the Asian giants thanks to its diversification and pres-
PAGE 16 OF 43
REPORT 30 OF 01-03-2013
ence in all of the high value added segments. STX OSV, listed on the Singapore
Stock Exchange and world leader in the construction of offshore support vessels
for oil and gas extraction and production, has approximately 9,200 employees
and 10 shipyards around the world (5 in Norway, 2 in Romania, 1 in Vietnam and
2 in Brazil, of which one is currently under construction). In the past three years it
has generated average revenues of approximately Euro 1.6 billion and EBITDA of
approximately Euro 190 million. At the end of the 2012 third quarter its order back-
log was Euro 2.1 billion.
Fincantieri – 23 Jan 2013
8. Croatia won European Union (EU) approval to increase the amount of aid re-
quired to restructure the troubled Brodosplit shipyard.
The move was made in response to Croatia agreeing further cuts in the yard's
annual production ceiling.Croatia has spent $4.9bn over the past two decades
propping up four indebted shipyards, including Brodosplit. The EU did not give a
figure for the "modest" increase in aid. But an official said Croatia also pledged to
sign the sale contract for Brodosplit by the end of February, a key step required
before joining the Union in July 2013. The yard, which has been making big losses
and only has a couple of heavylift vessels for Jumbo left in its orderbook, is being
sold to Croatian machine-parts and metal-products manufacturer DIV. It is likely
to be the first of the big yards to be privatised. DIV was said to have offered a to-
ken HRK 1 for Brodosplit but will need to invest $349m over five years.
Tradewinds - 22 February 2013
9. Damen Shipyards Group acquires Shipdock
As of this week, Damen Shipyards Group is the new owner of Dutch ship repair
yard Shipdock. Shipdock, a well-known shipyard group with roots dating back to
1877, operates facilities in Amsterdam and Harlingen. The yard will continue its
ship repair and conversion services, with Shipdock Harlingen servicing ships up to
120 m and Shipdock Amsterdam servicing vessels up to 250 m. Furthermore, its
personnel and management will remain in place, guaranteeing a seamless tran-
sition of the yard into the Damen Shipyards Group, which currently consists of
more than 50 shipyards, repair & conversion yards and related companies. René
Berkvens, CEO Damen Shipyards Group, says: “The Shipdock yards bring added
value to Damen, both separately in their own markets and regions and as a
whole – together they have ample experience in shipbuilding, ship repair, con-
version and steel construction. Damen is an established player in the shiprepair
industry and we are determined to become even better. That’s why we’ve re-
cently founded a new division, Damen Shiprepair & Conversion, in which all our
repair yards will be represented and organised efficiently.” “Shipdock and its 130
employees are welcomed most heartily within our repair & conversion division.
The integration into Damen can only be done with a motivated workforce. I, for
my part, am confident that they will live up to their motto: ‘Going the extra
yard’!“
Asiasis-2013-02-09
JAPAN
10. Japan orders inch down
The Japan Ship Exporter’s Association (JSEA) announced on January 18 that
Japanese shipbuilders contracted a total of 177 vessels of a combined 8.12m gt
of export ships during the full 2012, which declined by 9% year-on-year. Under the
buyers' market, proportion of yen-denominated contracts shrank up to 20% (65%
of foreign currency-denominated deal and 15% of yen-and-foreign currency de-
nominated). Due to low newbuilding demand from local shipowners, proportion
of net export ships increased to around 40% (69 vessels). The bulker segment took
the majority of orders, with proportion of 80% and Japanese shipbuilders booked
PAGE 17 OF 43
REPORT 30 OF 01-03-2013
small number of car carriers, VLCCs, LNG carriers, LPG carriers, PCs, boxships, etc.
Meanwhile, in 2012, Japanese shipyards delivered a total of 337 vessels of a cu-
mulative 15.05m gt, down by 8% year-on-year, in gt terms. Japanese shipbuilders
stood on overall 606 newbuildings to be operate in exportation routes of a com-
bined 27.57m gt and 12.34m cgt on the book, as of the end of December 2012,
which downsized up to the level seen in 2002 after hitting the peak with 70.94m gt
in September 2008.
Asiasis -January 21, 2013
SOUTH KOREA
11. Korea Tops Again!
Korean shipbuilders won overall 1.29m cgt (30 vessels, $2.834bn) of newbuildings
in December 2012, recording the monthly largest during the year, and were
ranked at the first place of total yearly new order for two years in a row.
Chinese shipyards, in December, booked 0.51m cgt (30 vessels, $882m), accord-
ing to Clarkson. Korea seemed to yield the first place to China with new orders
slowing down during the second half. However, due to successive orders con-
tracted in the end of last year, such as LNG carrier, MR tanker, cruder oil tanker,
etc., Korean shipbuilders inked a total of 7.46m cgt (225 vessels, $29.98bn) in the
full year 2012, while Chinese contracted overall 7.1m cgt (420 vessels, $15.45bn).
As of November, 2012, China was likely to win Korea, by having contracted
6.59m cgt, comparing with Korea's 6.17m cgt. However, the record switched just
in a month. Korean shipyards took back the first place from China in 2011, which
had been placed at the top during 2008-2010. Korea contracted 13.7m cgt,
while China inked 9.2m cgt in 2011. Meanwhile, worldwide newbuilding order in
2012 totalled 21.29m cgt (1,087 vessels), slightly more than 16.73m cgt (1,168 ves-
sels) from 2009. In 2012, Korean shipbuilders won more orders than 4.41m cgt in
2009 but less than 13.7m cgt in 2011. Chinese shipyards went through severe
stagnancy, with less orders booked last year, comparing with 8.28m cgt in 2009.
January 10, 2013, Asiasis
12. Korean L&M aim $12.8bn
While it is widely expected that global new ship order in 2013 is likely to rise by a
small margin year-on-year only within base effect, Korea's large and medium
sized shipbuilders (eight shipyards except Big4) are reported to target around
$12.75bn of new orders in shipbuilding and offshore segment according to Asiasis
Daily News. Although, a considerable number of shipbuilders are having difficul-
ties in obtaining new orders recently, they are expected to aggressively step for-
ward to winning orders by developing environment-friendly and high-efficient
vessels in 2013. Meanwhile, Hyundai Samho Heavy Industries contracted new-
buildings worth about $2.51bn in 2012 and it sets a target of $4bn for this year,
which is 60% up from the previous year. Also, as new investment for LNG carriers
and offshore plants is on the increase, the shipyard is planning to strengthen
these fields to enhance its business structure. Hyundai Mipo Dockyard which was
awarded orders totalling $3bn last year sets its target of $3.2bn for 2013 and it is
said to push itself to win orders mainly for Medium-Range Product Carriers along
with LPG carriers, PCTC, Platform Supply Vessels as they did last year. By the way,
SPP Shipbuilding, which won orders of $1.4bn only for 40 Product Carriers, is plan-
ning to win 42 newbuildings worth $1.4bn this year; they are mainly the MR PCs
along with small sized/LR PCs and Gas Carriers. Sungdong Shipbuilding & Marine
Engineering is said to target the same amount or a little more orders than SPP
Shipbuilding's. Sungdong is allegedly said to have won the amount of $0.8bn, by
putting pens on 16 orders last year, including shuttle tanker, purse seiners, etc.
Samjin Shipbuilding, which owns a shipyard in Weihai, China, originally targeted
$1bn for 2012 but won $0.8bn orders for bulkers and PCTC. Samjin is now targeting
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REPORT 30 OF 01-03-2013
the same value of orders as last year's, $1 bn, and has contracted for building
four 7,000DWT Crude Oil Carriers (two option vessels included) as its first order of
the new year. Meanwhile, Hanjin Heavy Industries & Construction is known to tar-
get orders of $0.9bn for Commercial Ships and Special Ships in its Shipbuilding di-
vision for this year. ShinaSB Yard is planning to obtain orders of 16 vessels (approx-
imately $0.5bn) quarterly including four MR PCs, while Dae Sun Shipbuilding & En-
gineering's target is said to be about $0.25bn for 2013.
Asiasis-January 23, 2013
13. HMD innovate yard system
Korea's Hyundai Mipo Dockyard and University of Ulsan are to carry out a project
to innovate shipbuilding operational system together. The project aims to
strengthen sales, design, purchase, production, project planning, as well as cost
management which would bring high competitiveness in quality and on-time de-
livery, while reduce cost. Mass production of specific ship types from the past is
no longer competitive in current shipbuilding market, which has become buyer's
market from seller's market, amid economic depression and intensified competi-
tion. Therefore, Hyundai Mipo decided to proceed the project to transform exist-
ing task system. Moreover, Hyundai Mipo's delivers a host of newbuildings, con-
sidering its plant capacity. Since it outsources some works, the shipyard is in need
of advanced distribution management system.
14. Shipbuilding orders won by South Korea’s shipyards in 2012 fell by almost half
against 2011 due to the impact of the global recession.
Korea’s shipbuilders won orders for 7.5 million compensated gross tonnes (CGTs)
of new ships in 2012, down 45.7 percent from 2011, according to Korea’s Ministry
of Knowledge Economy. Total orders won in 2012 were worth a combined
US$29.98 billion, down 37.7 percent. Korea’s market share remained the largest
globally for a second consecutive year at 35 percent of total world shipbuilding
orders in 2012. China fell behind Korea by 400,000 CGTs in new orders won. Korea
won all of the four newbuilding orders placed for liquefied natural gas floating
storage regasification units (LNG-FSRU). It also received orders to build 24 LNG
vessels and 26 drilling ships, showing its competitiveness in offshore plants and
higher-priced vessels. Exports of new vessels fell 29.8 percent on the year to
US$39.74 billion. Order backlogs decreased 26.3 percent to 28.5 million CGTs.
Worldwide shipbuilding orders in 2012 fell 36.8 percent to 21.3 million CGTs, the
ministry said.
shipandoffshore.net- 17 Jan 2013
15. Korea proceeds Ship Guarantee Fund
Korea's presidency transition team for president-elect Park Geun-Hye is said to
prefer creating ship guarantee fund totalling about KRW 2trn ($1.86bn) to estab-
lishing Ship Financing Corp. Ship guarantee fund provides guarantee for shipping
companies and shipbuilders to be able to make loans at banks. An official from
presidency transition team said that they are positively looking through creating
KRW 2trn of ship guarantee fund, contributed by the government and private
companies. It is said that Korea Ship Guarantee Fund (provisional name) is most
likely to operate the fund directly. Sources from Financial institutions said KRW 2trn
of fund would create KRW 20trn worth of lending effects.
Globalmaritime – 20.02.2013
FINANCING
16. Danish Ship Finance (DSF) has posted better earnings for 2012, but loan impair-
ments rose.
The shipping mortgage provider said net profit last year was DKK 314m ($54.73m),
up 29% year-on-year. Loan impairment charges rose from DKK 333m to DKK 523m.,
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REPORT 30 OF 01-03-2013
with the increase due to "adverse trends in the financial standing of a small num-
ber of borrowers triggered by the shipping crisis."It said it still maintained "highly
satisfactory liquidity resources", however, and expects to lend nearly DKK 8bn in
2013. DSF said: "The result is considered satisfactory in light of the challenges in
both the shipping market as well as in financial markets." Its total loan book stood
at DKK 46.4bn at year end. The company had first mortgages in 555 vessels,
spread between Danish and foreign shipowners.
Tradewinds – 4 March 2013
17. Cexim stands by $3bn ship finance target for 2013 despite credit risks
The Export-Import Bank of China has maintained its target of increasing lending to
shipowners by more than 40% this year from the 2012 level, despite rising credit
risks, in a drive to promote high-value, hi-tech shipbuilding at Chinese yards.
Cexim’s president of its Shanghai branch Li Li said the state-backed policy bank
expected to raise lending to owners to $3bn this year, against last year’s level of
$2.1bn.The figures, which did not include direct lending to yards, ports and logis-
tics firms, were fluctuating between $1.8bn-$1.9bn per annum during 2009-2011,
but the Chinese government has since moved to ramp up its support for domes-
tic yards that provide employment opportunities. The strategy is not without risk,
though, with many shipping lines unable to fulfil their obligations for debt repay-
ments and newbuilding contracts after suffering continued heavy losses amid
weak rates and high bunker costs. To help Chinese yards climb the value chain,
Cexim has stated that it is willing to support owners to build ultra-large boxships,
gas carriers, offshore vessels, fuel-efficient merchant ships and other high-value
orders in China. “More orders [of these types] will be placed in China and we are
capable of providing financing for owners”. In December, Cexim sealed a deal
to provide $308m in a $440m club deal to Seadrill, which is building two jack-up
rigs and two tender barges at Cosco Nantong shipyard.Cexim’s Shanghai branch
is its top financier outside of the Beijing headquarters, with a target of committing
around $500m in loans to owners this year. “The branch is mainly dealing with
Shanghai-based yards and the owners who order ships from Shanghai,” Ms Li said.
Cexim, which is mainly involved in export financing, has been seeking to increase
the range of its shipping loan products. Over the past year, it has been engaged
more in funding secondhand vessel purchases, leasing and equity investments.
That said, while those who meet Cexim’s criteria will welcome the bank’s move,
shipping as a whole is unlikely to solve the liquidity crisis on more Chinese monies
alone as traditional lenders in Europe withdraw. To give an example, German fi-
nancial institutions, which had an estimated €100bn ($133.6bn) in shipping expo-
sure, have basically stopped lending to owners. Commerzbank, one of the lead-
ing players, is winding down its $20bn portfolio. Cexim has a $12bn exposure to
owners and a Yuan25bn ($4bn) exposure to Chinese yards. Its exposure as a re-
fund guarantor totals $15.5bn.
Lloydslist - 25 February 2013
18. So what does the state do for you?
Debate continues over Asian nations’ backing for owners and yards
LET’s talk about subsidies, or government support.
You want it especially when you need it, when the issue at stake is how important
you are to the local, national and global economy. However, you envy others
when they get it, when the issue at stake becomes one of free-market principles.
What has happened in the US and European banking sectors constitutes among
the largest bailouts in history. Alas, shipping, which is in its worst shape in decades,
is generally not so lucky. Rarely has anyone talked about some shipowner being
too important or too big to fail. Yards, with the employment opportunities they
bring, generally draw more attention, though not much more. That is not to say
that western governments have not done anything. The French sovereign fund
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REPORT 30 OF 01-03-2013
has just pumped $150m into debt-laden CMA CGM, the nation’s largest contain-
er shipping line and the world’s third-largest. Berlin has returned its subsidies for
owners of ships under German flag to the normal level of €58m ($75m) this year,
after a brief dip in 2011. The US, of course, retains its Jones Act.
Lloydslist - 21 February 2013
19. The hand that guides China’s yards
As downturn hits state-owned giants, the government keeps them afloat
Bloodbath has been the buzzword for the Chinese shipping industry over the past
two years. Although many small privately owned players have gone out of busi-
ness, state conglomerates are also suffering heavily from overcapacity across
sectors. Weak rates at home and abroad have hit shipping lines. Now, the gloom
has spread upstream to Chinese shipyards.
Three listed units of China State Shipbuilding Corp, one of the nation’s two largest
builders, have seen their profits collapse this year. CSICL, the flagship unit of the
other giant China Shipbuilding Industry Corp, has performed relatively better with
around half its business unrelated to construction of commercial vessels. Its net
profit was down nearly 20% on-year in January-September, nonetheless. Little
wonder that speculation has been rampant about more state aid. Shipping
players’ balance sheets have worsened significantly and will not improve quickly.
Most are government-linked, provide employment and generate significant eco-
nomic output. State conglomerates, especially, seem obvious candidates for ex-
tended government help. However, this begs the deeper question: what help do
they really need?
Based on regulatory filings, China has very visibly supported state owners and
yards. Aside from standard, regular handouts, Cosco received one-off subsidies
of Yuan808.3m in January-September, more than double the year-ago amount of
Yuan317.8m. The government gave CSG Yuan499.6m during the same period, a
more than five-fold increase against the year-ago subsidy of Yuan90.2m.
China boosted subsidies to state yards, albeit to smaller degrees. The CSSC group
received Yuan1.4bn, 63.7% more than Yuan827.5m received a year ago.
CSIC, which needed less help, received a 5.7% increase in subsidies to Yuan1.4bn
compared to a year ago.
The Chinese state offers various forms of direct subsidies: owners and yards can
apply for handouts from central government for strategic projects such as build-
ing oil and gas tankers to ship energy products for national companies.
Local governments can offer tax credits and bargain-priced land leases for key
projects.
There is implicit support too. State majors can tap the domestic bond markets,
backed by the cash-rich government. China Shipping Development, CSG’s tank-
er and bulker unit, raised Yuan5bn to replenish working capital this year. CSICL
PAGE 21 OF 43
REPORT 30 OF 01-03-2013
sold convertible bonds totalling Yuan8.1bn, more than half used to support in-
vestment projects. CSSC raised Yuan16.5bn via three batches of sales for working
capital and loan repayments.
The same is likely to happen overseas. Cosco is planning to issue dollar-
denominated bonds totalling up to $2bn to fund its operations outside mainland
China. Standard & Poor’s recently described the loss-making company’s cash-
flow as “weak and volatile”, calling its liquidity “less than adequate”. However,
with government-owned Bank of China providing an unconditional standby letter
of credit to support the sale, major credit agency Moody’s has rated those bonds
upper-medium grade.
China provides liquidity from the banking side too. The Export-Import Bank of Chi-
na set up credit lines of Yuan60bn for both Cosco Group and CSG. Although in-
terest rates are generally negotiated on a commercial basis, state majors can
borrow from Chinese banks as first-tier clients. For all that support, however, many
Chinese players remain on fragile ground, due to the worst shipping downturn in
decades. The government is not likely to offer much by way of new aid, say ana-
lysts. “There will be limits to government support,” said Hwabao Securities analyst
Wang Hexu. “Macro-economic signals have been lacklustre lately and even Chi-
na cannot support owners and yards unconditionally for a sustained period of
time. “The Chinese government is more likely to offer subsidies for strategic rea-
sons. Industry players will need to find justified reasons when going for handouts.”
Yet owners appear to face limited options.
Shipping lines fighting for subsidies to scrap aged vessels and adopt eco-friendly
fuel technology will probably secure only small portions of their operating ex-
penses.
China is unlikely to take more protectionist measures over international maritime
trade, as that could prompt retaliation. As a major importer of natural resources,
moves to limit the freedom of cargo owners to use foreign owners’ services could
increase China’s freight costs. Beijing has reaffirmed that cabotage is restricted to
Chinese ships and strengthened regulation. However, this will not help domestic
owners, as foreign vessels are barred from Chinese waters.
Beijing is encouraging domestic owners to build more tankers at Chinese yards,
notably with the long-discussed pool of 50 very large crude carriers. This is not just
related to energy security. Weak prices for secondhand VLCCs mean the gov-
ernment could easily have bought the vessels. Instead, it wants to build at Chi-
nese yards to support industry development. That might explain some state carri-
ers’ apparent opposition to this idea. Building more vessels brings additional ca-
pacity to the over-supplied market, and that scares both foreign and Chinese
owners.
Nevertheless, some Chinese shipyards may find another niche, building offshore
vessels and facilities for energy exploration and production. China has vowed to
increase its share of its global offshore building market to 20% by end-2015 from
the end-2010 level of 7% and support will continue to flow to capable players.
Choppy waters lie ahead, as overcapacity is expected to last for one or two
more years. Despite this, Chinese state-owned enterprises can comfort them-
selves that Beijing will not let them go bankrupt.
They will be able to continue breathing, if barely — but that is already a luxury for
many of their peers.
Lloydslist - 22 November 2012
PRICES, FUEL, FREIGHT & EXCHANGE RATES MARKETS

20. Early indications suggest that 2013 could shape up into a considerably better
year for container lines than 2012, which failed to match promises in the latter
PAGE 22 OF 43
REPORT 30 OF 01-03-2013
half. That is the view of Hapag-Lloyd executive board member Ulrich Kranich,
who expects to see a peak season in the coming months after the disappoint-
ment of last year, when the usual July-October upturn never materialised. Instead,
volumes slipped back at a time when lines would normally expect to be operat-
ing very full ships and applying rate surcharges. Acknowledging that this year’s
peak season may not be as strong as that seen in 2010, one of the best to date,
Mr Kranich nevertheless thinks the omens are positive. Consumers may be spend-
ing less in some areas such as hard-pressed southern Europe, but what matters for
container lines is the volume of cargo shipped, not the value of merchandise. For
both the transpacific and Asia-Europe trades, 2013 has started well, according to
Mr Kranich, with better demand levels helping to push up freight rates. Particularly
encouraging from container lines’ point of view is the relatively good conditions
seen in the trades from Asia to the US east and west coasts, which bodes well for
the forthcoming annual contract negotiations. But the European trades “are also
sending out more hopeful signals”, Mr Kranich said. That includes southern Europe,
where exports have risen, and import volumes are looking better too.
Lloydslist – 28 January 2013
21. Weak Yen to hit Korea
It is said that if the value of the yen continues to fall against the rise of the won,
Korea’s major export businesses in Information Technology, automobile, shipbuild-
ing, etc., are like to suffer greatly. The Financial Supervisory Service of Korea sur-
veyed the nation’s eight banks, KB Kookmin Bank, Shinhan Bank, Woori Bank,
Hana Bank, Korea Exchange Bank, Korea Development Bank, Industrial Bank,
Nonghyup, and the Information Technology (IT), Automobile, Shipbuilding indus-
tries are turned out most-likely to suffer from the won-dollar exchange.
Due to intense export competition against Japanese, Korean companies' price
competitiveness and the market share are likely to drop if the yen remains weak.
Meanwhile, the nation’s major banks saw the break-even point of the won-dollar
exchange to be KRW 1,016.2 with the won-yen’s KRW 1,160.6. The break-even
points by industry are said to be KRW 1,074 for IT business, KRW 1,067 for steel &
metal, KRW 1,057 for automobile and KRW 1,055 for shipbuilding.
Asiasis – 20 Feb. 2013
22. Bunker costs stay stubbornly high.
Brokers urge hedging as alternative protection against rising fuel costs
Two years after the uprising in Egypt that ignited insurrection across other Arab
states and pushed up the price of oil due to uncertainty over global supply, bun-
ker prices remain higher than $600 per tonne, hampering shipowners’ efforts to
reduce costs. Saudi Arabia, the world’s largest oil producer, wants the oil price to
stay around $100 per barrel. As such, bunker prices are not forecast to fall signifi-
cantly; giving owners no option but to seek new ways to reduce vulnerability to
high bunker prices. A $0.50 move on the price of crude can raise the bunker fuel
price by as much as $3 per tonne, according to Freight Investor Services.
With bunker costs now accounting for 70%-75% of the expense of transporting
cargo, FIS brokers are urging more owners to hedge bunkers to protect them-
selves against rising prices, using new tools that offer an alternative to traditional
methods of protection against rising fuel prices. Owners have traditionally incor-
porated fluctuating fuel prices into contracts with shippers. Some owners buy
large so-called bunker clips traded through banks, which many see as an ineffi-
cient and expensive process because the banks often trade the contracts and
as such may have their own interests in keeping prices up. Those owners that do
hedge often do so for only a small percentage of their bunker requirements. For
example, Danish product tanker company Torm covered 7.6% of its bunker re-
quirements by hedging in 2011, up from 1.9% in 2010. It is difficult to determine
how many owners hedge bunkers, as many private companies do not reveal the
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REPORT 30 OF 01-03-2013
information, say analysts. Not all owners are enthusiastic about hedging, however.
Maersk Tankers previously told Lloyd’s List that hedging bunkers is not the answer
to the problem of rising bunker prices. The company said the fact that bunkers
have more than doubled in five years means owners are unlikely to benefit much
from a forward hedge. Instead, it suggested a surcharge on voyage contracts to
cover rising bunker costs.
Lloydslist-25 January 2013
II. DEVELOPMENTS BY SEGMENTS

EQUIPMENT AND SUPPLIERS
23. BIO-SEA Ballast Water Treatment System Gets Type-Approval (France)
BIO-UV went well beyond the International Maritime Organization (IMO) require-
ments for Ballast Water Treatment (BWTS). Indeed both requirements were met:
the land tests where various and numerous filtration cycles were required, as well
as the on-board testing for 2 different vessels (one on board the CMA-CGM with
1000 m3/h, the other on board the Marfret with 500 m3/h).
World maritime news - February 28, 2013
24. First Danish Ballast Water Management System Approved
The Danish company DESMI Ocean Guard A/S has had its ballast water man-
agement system approved – as the first company in Denmark. When the system is
installed on board a ship, it removes plants and animals that could otherwise
travel as stowaways in ballast water. This new system is a good example of the
comprehensive green conversion that international shipping is facing in coming
years and that presents a great growth potential for environmentally-friendly and
energy efficient maritime solutions. Thus, the management system is an example
of one of the green solutions that the Government focuses on in its Growth plan
for the Blue Denmark.
25. Kongsberg, Norwegian Coastal Administration to Develop New VTS System
February 4, 2013 marked the beginning of a 5-year collaboration between the
Norwegian Coastal Administration (NCA) and Kongsberg Norcontrol IT (KNC) to
develop and establish a new national Vessel Traffic Service (VTS) system. The con-
tract covers replacement of the current VTS systems in Horten, Brevik, Kvitsøy, Fe-
dje and Vardo, in addition to establishing a VTS simulation centre, with systems
supplied by Kongsberg Maritime.
26. Germany: Becker Marine Unveils New Energy-Saving Device
Becker Marine Systems continues to focus on energy savings. On average, power
savings of over 6% could be achieved and by December 2012 more than 150
vessels have been equipped with the Becker Mewis Duct®. In the last three years
over 350 systems have been sold. Becker Marine Systems has reacted to the
heavy demand of shipping companies for a similar device for faster vessels. After
two years of research and based on three years operational experience with the
Becker Mewis Duct® Becker Marine Systems has developed a new energy-saving
device tailor-made for container ships and other types of fast vessels with bulbous
stern – the Becker Twisted Fin®. The savings of the Becker Mewis Duct® are re-
duced at speeds above approx. 20 knots, which is why this solution is for slower
ships such as tankers, bulk carriers and heavy load vessels. The tank tests were
conducted at HSVA in Hamburg in October 2012 and the first installation
took place at Damen Shipyard in Rotterdam in December 2012. The big
challenge was the installation time of three days and a total docking time
of five days. The complete installation was carried out during the normal
PAGE 24 OF 43
REPORT 30 OF 01-03-2013
class docking of the vessels. Following the first journeys, the measured
power savings from the model test were able to be reproduced during the
vessel’s operation. The system fulfills the newest EEDI regulations.
27. MAN D&T to Power Up New Vessel for Visemar (Italy)
Italian Visemar has placed an order with the Cantiere Navale Visentini yard, near
Venice, for a RoRo ship. The vessel will be powered by a complete MAN propul-
sion package featuring 2 × 9L32/44CR medium-speed engines. The newbuilding is
scheduled to follow in April 2014 and, having already been granted a ‘green
passport’ and green star certification, will be one of the most efficient and envi-
ronmentally friendly vessels in its class.
28. Rolls-Royce: New Technologies for Deep Waters (Brazil)
To handle the new heavyweight anchors required for rigs operating in extreme
depths off Brazil, Rolls-Royce has developed a tailor made solution.
Two torpedo anchor-handling systems will be installed on two anchor-handling
vessels to be built for the Norwegian shipowner DOF.
Brazilian oil giant Petrobras has developed the torpedo anchor to meet the chal-
lenges of the depth and seabed conditions encountered off the country, and
have chosen the Rolls-Royce solution for safe and effective handling the anchors
on and off the vessel.
The torpedo anchor itself weighs a massive 130 tonnes whereas a conventional
regular anchor weighs in at 22 tonnes.
The torpedo anchor handling equipment is part of a complete winch and Safer
Deck Operations equipment package.
29. Rolls-Royce Introduces Its Unified Bridge Solution (Norway)
Rolls-Royce, the global power systems company, has announced that an off-
shore vessel, currently under construction for Simon Møkster Shipping, will be the
first in the world to feature the new highly innovative Rolls-Royce Unified Bridge
solution – representing a step change in vessel operation.
As offshore ships have become more technologically advanced and able to per-
form more highly specialised duties, their bridges, as the command centres for
the ship, have become more complex. It simplifies the range of controls, panels
and displays for the various onboard systems, provides significantly improved er-
gonomics and easier operation which enhances operator and crew safety and
improves task efficiency. The bridge layout can also be tailored to meet the
needs of a number of different vessels
30. UK: ShipServ Signs CMA Ships
ShipServ, the leading marine and offshore e-marketplace, has built further on its
trusted position among container owners and operators with the signing of CMA
Ships, the wholly owned fleet and crew management subsidiary of the CMA
CGM group.
CMA Ships signed with ShipServ on the strength of its pedigree in the container
market, and was attracted by new modules available on TradeNet that include
e-invoicing and e-logistics.
The Marseille-based company is currently responsible for the procurement activi-
ties of around 100 container vessels.
CMA Ships will connect to ShipServ through its current BassNet fleet management
software suite.
31. Wartsila Receives Repeat Order for Emissions Control Products
PAGE 25 OF 43
REPORT 30 OF 01-03-2013
Wärtsilä, the marine industry’s leading solutions and services provider, has re-
ceived a repeat order to provide a hybrid exhaust gas cleaning and SCR system.
The contract was signed in December 2012.
The systems provide universal compliance with sulphur limits including the North
American ECA, the 2015 0.1 per cent ECA in Europe, the worldwide 0.5 per cent
sulphur limit from 2020 and Tier III IMO NOx limits from 2016. The hybrid exhaust gas
cleaning system also enables the choice between open-loop and closed-loop
scrubbing to be made at any time, maximising control. This means that exhaust
gas cleaning using only seawater can be enabled at sea but while manoeuvring
or in port the system can be closed, re-circulating the water already within the
scrubber. In addition, the SCR system, which is integrated into the engine down-
stream of the exhaust gas turbine, will remove up to 95 per cent of NOx from the
vessel’s emissions.
World maritime news - January 15, 2013
32. Seaspan to Equip Saver Class Vessels with CleanBallast
North America’s leading containership owner Seaspan, with a fleetserving cus-
tomers in Asia, Europe and South America, caused quite a stir when it showcased
its revolutionary SAVER (Seaspan Action on Vessel Energy Reduction) design of
10,000 TEU container vessels. Pursuing the aim of top-efficiency ship operation
and improved operational performances, Seaspan has now decided to equip its
Saver class vessels with RWO’s ballast water treatment system CleanBallast.
The delivery of the first plant to China’s Jiangsu New Yangzi shipyard is set for
March 2013 where installation will take place.
33. MOL to Install Ballast Water Treatment System on VLCC
Mitsui O.S.K. Lines, Ltd. today announced plans to install a ballast water treatment
system on a very large crude oil carrier (VLCC) currently in service.
This will be the first such onboard system installed by any Japanese shipowner on
an existing VLCC. The company chose the JFE Ballast Ace developed by JFE En-
gineering Corporation. The installation will take place while the vessel is docked
from March through April.
34. Taking stock on ECDIS
ECDIS (Electronic Chart Display Information Systems) became mandatory for new
passenger ships of over 500gt and newbuild tankers of over 3,000gt from 1 July
2012. However, from 1 July 2013 the rules extend to new cargo ships other than
tankers of above 10,000gt, with the phase-in for existing ships running between
2014 and 2018. Mandatory ECDIS presents shipowners with a number of key chal-
lenges. To a large extent these revolve around choosing the right hardware to in-
stall and specifying the optimum technical solutions which, best suit both the
bridge layouts of individual owners and the owner’s pocket. Refit requirements in
particular can be complex and several manufacturers are already marketing
ECDIS versions specifically for installation on existing ships. However, as Luuk
Vroombout, of The Netherlands-based Alphatron Marine, points out: “Shipowners
can buy the equipment needed to comply with ECDIS with no real problems. But,
they have to remember they must have the training systems in place before they
can use it, as the rules say all masters and watch keepers must be trained in both
generic and type-specific ECDIS. This year’s Europort 2013 that will be held in Rot-
terdam 5-8 November will see navigation companies and shipowners discuss the
issue of ECDIS further.The Naval Architect: March 2013
NAVAL
35. STX exports naval vessels
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REPORT 30 OF 01-03-2013
STX Offshore & Shipbuilding of Korea succeeded in exporting its naval vessels.
STX has announced on February 7 that it signed an agreement with the Ministry of
National Defense of Colombia for two 250-ton Coast Guard Vessels. Present at
the signing ceremony were Sin Sang-Ho, president of STX Offshore & Shipbuilding,
and Roberto Sachica, the president of the shipyard of the Colombian Navy, etc.
The newbuildings contracted are said to be approximately KRW 34bn ($30m) and
the vessels are to be constructed at Jinhae Shipyard with delivery due end of
2014.
At the signing ceremony, STX also announced to sign a memorandum of under-
standing (MOU) for supplying marine equipment, such as engine of ship.
Under the terms of this MOU, STX is to supply marine equipment for 14 Coast
Guard Vessels and if the MOU is exercised, STX expects it to be worth a total of
KRW 140bn ($120m); The Columbian Navy is planning a large-scale replacement
of its aging fleet. The contract with STX is also the part of its modernization strate-
gy for its naval vessels and the additional large orders are expected, including
1,500-ton Offshore Patrol Vessels
Asiasis 07.02.2013
36. U.S. Navy Take Notice: China is Becoming a World-Class Military Shipbuilder
China’s military shipyards now are surpassing Western European, Japanese, and
Korean military shipbuilders in terms of both the types and numbers of ships they
can build. If Beijing prioritizes progress, China’s military shipbuilding technical ca-
pabilities can likely become as good as Russia’s are now by 2020 and will near
current U.S. shipbuilding technical proficiency levels by 2030. China is now mass
producing at least six classes of modern diesel-electric submarines and surface
warships, including the new Type 052C “Luyang II” and Type 052D “Luyang III” de-
stroyers now in series production. Eight key themes, listed sequentially below,
characterize China’s rise as a world-class military shipbuilder. For reference, the
companies building the warships are China State Shipbuilding Corporation
(“CSSC”) and China Shipbuilding Industry Corporation (“CSIC”).
1. China’s warship buildout thus far supports modernization and replacement, not
rapid expansion
Over the past six years, China’s overall fleet of frontline combatants has expand-
ed, but slowly, growing from 172 ships in 2005 to an estimated 221 vessels in 2012.
However, the fleet has improved substantially in qualitative terms as newer ships
and subs replace older ones. For instance, as Type 052 C/D Luyang-series de-
stroyers, Type 054A Jiangkai II-series frigates, and Type 041 Yuan diesel-electric
submarines have come into the fleet, they are allowing the People’s Liberation
Army Navy (PLAN) to steadily retire obsolete platforms like Luda destroyers and
Ming submarines.
2. Chinese military shipbuilders are catching up to Russian and U.S. Yards
China’s large state-backed military shipbuilders are approaching their Russian
and U.S. peers in terms of the number of warships built. China’s large submarine
and surface warship buildout will, in a decade, likely have it become second only
to the U.S. in terms of total warships produced since 1990. More importantly, the
ramp-up of China’s construction of large warships in recent years will mean the
PLA Navy will likely be taking delivery of larger numbers of modern surface com-
batants and submarines annually than the U.S. Navy.
The Diplomat - November 01, 2012
37. DIMDEX 2014 Attracts Defence Industry Leaders to Qatar
Held under the patronage of His Highness, Sheikh Tamim bin Hamad bin Khalifa
Al-Thani, Crown Prince of Qatar, with the official support of the Qatar Armed
Forces and hosted by the Qatar Emiri Naval Forces, DIMDEX 2014 is the definitive
exhibition for the industry to take advantage of current and future procurement
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REPORT 30 OF 01-03-2013
opportunities for all naval requirements across the Middle East and North Africa
(MENA) region.
DIMDEX, now firmly established as the Middle East and North Africa leading mari-
time and naval defence exhibition and conference is set to be the largest event
for maritime defence and protection of critical off shore infrastructure. It will be
held at the Qatar National Convention Centre, between 25 – 27 March, 2014.
World Maritime News - February 18, 2013
NEWBUILDINGS
38. Yards Have 1.7 Years Left
A recent report from Clarkson Research said shipyards are now sitting on forward
orders for just 1.7 years, which are way below 3.5 years of backlog in 2008.
Merchant ship newbuilding orderbook is now worth $169bn while offshore units
valued at $139bn. In 2012, just 209 shipyards succeeded in winning new ship or-
ders, compared to 540 shipyards securing new workload back in 2007.
Global newbuilding deliveries are forecast to fall by 13% year-on-year in 2013,
according to Clarkson. Last year a combined 152.2m DWT of newbuildings were
handed over by global shipyards to each shipowner, and 132.2m DWT of new
tonnage is expected to be added this year.
39. 2012 orders fell 45%
In December, overall 5.2m dwt worth $6.4bn were contracted, the highest
monthly volume of orders placed since January 2012. On the other hand, con-
tracts signed in the full year of 2012 totalled 34.4m dwt worth $80.8bn, which fell
by 45% year-on-year in dwt terms.
277 bulkers were placed in 2012, fell by 53% on the previous year, marking the
lowest level of bulker ordering since 2001, according to latest date from Clarkson.
In the boxship sector, 70 vessels were ordered last year, a decrease of 71% year-
on-year, and recorded the second lowest number of containership contracts,
apart from 18 orders in 2009.
On the other hand, the number of orders placed in the gas sector grew by 18%
year-on-year to 86 vessels. LPG carrier orders more than doubled from those in
2011 to 51 vessels in 2012, while the number of LNG carriers contracted dropped
by 30% y-o-y to 35 orders.
Amid oversupplied market and limited access to ship finance, overall $80.8bn
was invested in the full 2012, declined by 21% on the previous year.
Investment in the offshore and gas segments marked $42.8bn and $9bn, ac-
counting for 53% and 11% of total investment. Overall $7.2bn and $6.9bn were in-
vested in the bulker and tanker segments, declined by 57% and 10% year-on-year
each.
Meanwhile, newbuilding investment in the cruise sector went up by 47% y-o-y in
2012, worth $7bn (11 vessels) whilst $1.5bn was invested in pure car carriers, com-
paring with $300 invested in 2011.
The Clarkson Newbuilding Price Index, at the end of December 2012, posted
126.3 points, slightly grew from 125.9 points on the previous month. However, this
represents 9.2% decline, the largest y-o-y reduction since 2009 when the index
plunged by 22.3%.
Particularly, the boxship segment saw the biggest declines in benchmark new-
building prices, by falling 18% on 2011. The benchmark LNG carrier newbuilding
price set its lowest record since 2006, by posting $199.5m as of the end of last
year.
Overall 152.2m dwt was delivered in 2012, representing 7% decline in dwt terms.
Especially, a total of 97.7m dwt hit the water in the first half of 2012, the largest
PAGE 28 OF 43
REPORT 30 OF 01-03-2013
volume of tonnage to be delivered in any six month period, whilst the second half
of the year saw a reduction in output, with 54.5m dwt entered the fleet.
Global orderbook stood at 4,603 vessels of a combined 259m dwt and 92.8m cgt,
at the end of 2012, down by 29%, 34% and 26% year-on-year, respectively. The
bulker orderbook plunged by 41% year-on-year in terms of dwt.
Meanwhile, 1,266 vessels of a cumulative 57.5m dwt with an average age of 27.6
years were demolished in 2012. This represents 35% increase in dwt terms. Bulkers
topped in demolition volumes, with 60% shares.
Published : January 18, 2013
40. China to Build 2,500 Ships for Indonesia
Indonesia Chamber of Commerce & Industry (Kadin) to import 2,500 short sea
service ships from China starting this year. Natsir Mansyur, Vice Chairman of
Kadin's Trade, Distribution and Logistics division informed Xinhua, the official Chi-
na News Agency, that Kadin has signed the agreement with China and a total of
2,500 coastal and short sea ships worth US$5-billion will be delivered gradually
within 5 years starting 2013. The massive order for ships is aimed to improve the
logistics and distribution performance amongst ports scattered throughout the
Indonesian archipelago. Transporting goods in Indonesia, the world's largest ar-
chipelago with 17,000 islands, is very costly due to poor logistics and bad infra-
structure. A report released by World Bank showed Indonesia's position in the 2012
Logistics Performance Index at 2.94 on a scale of 5, ranking it 59th, to lag behind
its regional peers, the Philippines and Vietnam.
Source: Xinhua - January 29, 2013
41. Yard capacity has shrunk by a third in the past five years but it is still not enough
to balance fleet supply and demand, says RS Platou.
“Shipbuilding capacity is about a third lower than it was at the 2008 peak as
yards close or reduce employment,” the Oslo-based broker said.“The current es-
timated capacity of 35mcgt is still more than needed in the next two years,” it
wrote in its monthly market report. “We expect the overcapacity in the merchant
fleet to be some 6% this year and in order for the excess tonnage to be absorbed,
we need to see deliveries lower than this estimated capacity.”“Under the prevail-
ing market conditions, where shipbuilders are forced to accept new contracts
below cost levels, we have seen a significant share of the building capacity
withdrawn or removed,” it said. Chinese yards tracked by RS Platou have in-
creased from 22 in 2002 to 127 by 2011 while these same yards have also seen a
50% increase in productivity levels. But RS Platou said it expected to see a “sub-
stantial consolidation” to take place within the next few years among these facili-
ties. Deliveries of new ships surged from 18 mcgt in 2002 to a peak of 44mcgt in
2011, led by a 13-fold boost in new ships built in China, it added.
Tradewinds- 05 March 2013
OFFSHORE ENERGY
42. Big4 Eye 70% Offshore
Korean major ship and offshore builders seek more aggressive sales in the off-
shore segment in 2013. Big4 target to win overall $52.75bn in the shipbuilding, off-
shore and plant sectors, of them offshore and plant (including STX Offshore &
Shipbuilding, LNG carrier) accounting for 70%, worth around $36.5bn. Hyundai
Heavy Industries revealed, Shipbuilding division aimed at $7.75bn, while offshore
& engineering and industrial plant & engineering planned $6bn each. Shipbuild-
ing division lowered 2013 target from 2012's $9.11bn, while offshore and plant divi-
sions all raised targets from $5.2bn and $5bn for last year. Hyundai, which saw a
poor order record in 2012, put spurs to win big projects, already having contract-
ed Spar platform topside worth $1.1bn from Statoil, as well as five 14,000-teu box-
ships from Canadian owner Seaspan totalling $600m. Daewoo Shipbuilding &
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REPORT 30 OF 01-03-2013
Marine Engineering won overall $14.28bn of orders last year, which surpassed its
$11bn of target by around 30%. Daewoo aimed to book a total of $13bn in 2013,
of them offshore plant accounting for about 80%, $10.4bn. Daewoo penned
around $10.5bn just in the offshore segment and recorded as the first builder to
exceed $10bn orders in the offshore sector in a full year. Daewoo is also said to
come closer to score an order for LNG-FSRU. In 2012, Samsung Heavy Industries
contracted overall $9.6bn, of them drillship represented 51% of proportion, while
offshore production facility, LNG carrier and tanker accounted for 36%, 8% and
5% each. The Geojae-based shipyard plans to win about $10bn orders in the off-
shore segment this year, of total target of $13bn. It contracted an order for one
LNG-FSRU with BW Maritime of Singapore, its first order of this year. STX Offshore &
Shipbuilding targeted to win $7bn this year, particularly, $4.1bn for LNG carrier
and offshore plant segments. STX recently delivered Russia's state-owned
Sovcomflot's arctic LNG carrier and plans to put all its efforts in leading the Rus-
sian LNG market in the near future.
43. Chinese yards will seek offshore partnerships this year
China will seek to extend its influence in the offshore sector, generating work for
shipyards looking to take advantage of this lucrative niche. According to Fei
Kwok, a finance and energy lawyer based in Shanghai, the Chinese want more
collaborations with Western companies to boost their offshore knowledge and
ability to build vessels that support the offshore industry. However, there are hur-
dles to “finding the right fit”, she points out. These barriers centre on discussions of
intellectual property protection and issues of different management styles. As Ms
Kwok puts it: “We might see more and more collaborations, but whether there will
be lots of successful examples, it’s hard to tell.” Despite Chinese enthusiasm, it will
be a while before China stamps its presence emphatically on the high-value ar-
eas of offshore construction such as semi-submersibles and rigs. Instead, there will
be more lower-value construction of platform supply vessels and anchor-
handling tug supply vessels. “To move into a higher-value chain requires a very
strong financial position,” says Ms Kwok. Some Chinese yards have struggled fi-
nancially, as reported by Lloyd’s List, and other issues that hinder moving into
high-value offshore building include a lack of technical experience and lack of
the right management style.
Alongside the Chinese drive into offshore vessels and units, yards will increasingly
look at building liquefied natural gas carriers. LNG is viewed as a relatively safe
market by the Chinese, she says, because there are not the huge fluctuations in
freight rates seen in other shipping markets. This stability attracts funding from
Chinese export credit agencies. Could Chinese yards become the next great
builders of LNG carriers, surpassing the South Koreans and Japanese? This will be
a hard task, says Ms Kwok, because although seven Chinese yards are licensed
to build LNG ships, only the Hudong yard in Shanghai has actual experience of
building these specialised carriers. If China is going to achieve a target of build-
ing 40 or 50 LNG ships in the next 15-20 years, as has previously been proposed by
Chinese officials, all seven yards would need to start work. It is likely that if these
ships are built, the government and Chinese oil companies will push for them to
carry Chinese-purchased LNG. This would potentially squeeze out other shipown-
ers hoping to carry cargoes to China. Of course, if China starts to extract its do-
mestic shale gas reserve, which is thought to be the biggest in the world, then
seaborne LNG imports into China could become irrelevant. That scenario is edg-
ing closer to reality. “The Chinese government is pushing very hard for local com-
panies to invest in shale gas,” says Ms Kwok. “One of the reasons is to meet Chi-
na’s own target for reduction of carbon dioxide, and there are promising signs ,
PAGE 30 OF 43
REPORT 30 OF 01-03-2013
with Petrochina and Sinopec seeing successful gas flows from some test
wells.“That will certainly have an impact on LNG imports into China.”
Lloydslist-03 January 2013
SHIP REPAIR, RETROFITTING, MEINTENANCE AND CONVERSION
44. 2012 hit the record year for demolitions with a reported 57.5m dwt (1,266 ves-
sels) sold for scrap, which increased by 34.6% year-on-year. Total demolition
volume in 2012 approximates record in 2009 but is larger than total volume of
newbuildings contracted in 2012, by 21%. According to latest Clarkson report,
newbuilding contracting in 2012 totalled 45.5m dwt, which fell behind of those
demolished in the same full year. In 2008 when global financial crisis occurred,
14.2m dwt were demolished. After that, scrapping activity sharply increased in
2009 to 33.4m dwt, which slightly dropped to 27.8m dwt but grew back to 42.7m
dwt in 2011. While low rates extend, demolition of older vessels with higher fuel
consumption increased amid protracted high oil prices. Also, average age of
those sold for scrap fell down to 27.6 years last year from 30.6 years in 2011. An
estimated volume of 45.8m dwt would head towards scrapping facilities this
year, while 33.2m dwt are expected for 2014, reported Clarkson. "Bulkers
topped the demolition tables, with a 59.5% share of the year's demolition vol-
umes. 557 bulkers of a cumulative 32.9m dwt were sent to shipbreaking yards in
2012," said Clarkson. An average demolition age for bulker stood at 28.2 years.
Meanwhile, overall 131 tankers of a combined 11.8m dwt (23.2 years in aver-
age) were sold for demolition. Comparing with those demolished in 2011, bulker
scrapping last year rose by 42% from 23.2m dwt and tanker grew by 19% on
9.9m dwt. As for demolition of container ship, a total of 178 vessels were demol-
ished in 2012, including 147 small-sized vessels (23.8 years in average) under
3,000 teu and 31 medium-sized vessels (22.3 years), etc., which compares with
2011 when 55 small-sized boxships and three medium-sized vessels were sold for
scrap.
45. Demolition levels for the first two months of 2013 are 20% behind those seen a
year ago latest figures show.
Clarkson Research says 7.8mdwt has been sent for scrap in January and February
of this year compared with 9.9mdwt a year ago. Only the capesize and aframax
sectors have seen higher levels of scrapping so far this year compared to the first
two months of 2012. Capesizes of around 2.3mdwt have been scrapped versus
1.2mdwt a year ago.In the aframax sector some 700,000-dwt was recycled
against 500,000-dwt. According to the latest Clarkson figures no VLCCs have
been sold for scrap so far in 2013 against 1.1mdwt last year. Only two suezmaxes
look to have gone to the breakers yards so far this year against 1mdwt worth in
the first two months of 2013. In the dry bulk space panamax and handymax
scrapping is at half the levels seen this time last year. Handysize bulker scrapping
is largely in line with what was seen a year ago, the London shipbroker’s figures
show. Among the major ship scrapping nations only Bangladesh has seen a year-
on-year increase in demolition levels. Clarkson figures appear to show that Bang-
ladesh has so far scrapped around 2.4mdwt against 1.3mdwt a year ago. Paki-
stan looks to have been the biggest loser with demolition levels down 50% on a
year ago to 800,000-dwt. India is down 25% on a year ago at 2.4mdwt, while Chi-
nese scrappers have only broken up 1.6mdwt against 2.4mdwt in the first two
months of 2012.
EU AND SHIPBUILDING
46. Launching of LeaderSHIP2020
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REPORT 30 OF 01-03-2013
A chronic lack of funding has led to a new scheme being proposed to help ship-
building projects survive
A new state-backed funding scheme to promote green ship newbuilding and re-
fitting projects is among a series of wide-ranging proposals under discussion as
part of a joint-industry European Commission (EC) initiative to help the shipbuild-
ing industry survive. A new governmental paper, “New Opportunities for the Fu-
ture”, published under the Leadership 2020 project, was tabled at the EC last
week. It identified the credit crunch as one of the major obstacles to the indus-
try’s prospects. It claimed lack of funding has become “the single most important
factor in competing for international shipbuilding contracts”. “Sometimes, con-
tracts are being placed based on the availability of finance over the technical
competences of the bidder,” the paper said. To help bridge the funding gap, the
paper’s sponsors said they would like to see the European Investment Bank (EIB)
play a bigger part in funding environmentally driven newbuilding projects. The
EIB’s main shareholders are the 27 European Union (EU) member states. The bank
is largely regarded as the EU Bank. “The expansion of the scope of lending by the
EU should be further explored by the industry to take EIB financing into considera-
tion for projects related to ‘green shipping and retrofitting’,” it said. European
yards and machinery manufacturers said they would also like to see Public Pri-
vate Partnerships (PPPs) in Europe develop green shipping projects. These could
be either non-profit public-works projects or commercial initiatives — but they
must be kept within state aid rules. The industry also proposed that funds raised
from either an international or the EU’s so-called market-based measures or emis-
sions-trading schemes to promote a reduction in greenhouse gasses from ship-
ping could be used for what it describes as the “greening of ships”.
Refund guarantees
The paper goes on to call for EU member states to consider helping provide re-
fund guarantees for yards; the lenders are currently unable to provide the sup-
port because of the downturn in shipping markets and the credit crunch.
A proposal to provide an EU guarantee scheme has not got off the ground.
The funding proposals are among a series of recommendations that also include
“promoting employment and skills, improving market access and fair market
conditions, and research, development and innovation”.Community of European
Shipyards Associations (CESA) secretary-general Douwe Cunningham said: “Now
is the time to work closely with the EC and other Leadership 2020 stakeholders in
order to ensure the recommendations are effectively implemented.”Industry in-
put into Leadership 2020 came through SeaEurope, which is made up of CESA
and the European Marine Equipment Council.
47. The EU and US have decided on 13 February 2013 to initiate the internal proce-
dures necessary to launch negotiations on a Transatlantic Trade and Investment
Partnership, based on the recommendations of the High Level Working Group
on Jobs and Growth. In terms of size, the EU-US trade relationship is the biggest
in the world, with around €2 billion of goods and services traded every day be-
tween the European Union and the United States. The EU and the US economies
account together for about half the entire world GDP and for nearly a third of
world trade flows
Rapid press releases, EC – 18.02.2013
48. EU launches clean fuel strategy
The European Commission launched an ambitious package of measures to en-
sure the build-up of alternative fuel stations across Europe with common stand-
ards for their design and use. Policy initiatives so far have mostly addressed the
actual fuels and vehicles, without considering fuels distribution. Efforts to provide
incentives have been un-co-ordinated and insufficient.
PAGE 32 OF 43
REPORT 30 OF 01-03-2013
EC Vice President Siim Kallas responsible for Transport said. "Developing innova-
tive and alternative fuels is an obvious way to make Europe's economy more
resource efficient, to reduce our overdependence on oil and develop a
transport industry which is ready to respond to the demands of the 21st century.
Between them, China and the US plan to have more than 6 million electric ve-
hicles on the road by 2020. This is major opportunity for Europe to establish a
strong position in a fast growing global market."
The Clean Power for Transport Package consists of a Communication on a Eu-
ropean alternative fuels strategy, a Directive focusing on infrastructure and
standards and an accompanying document describing an action plan for the
development of Liquefied Natural Gas (LNG) in shipping.
EC– 24.01.2013
49. The European Union will support with over €1.2 million from the TEN-T Programme
a study aimed at identifying and addressing the potential barriers to the con-
struction and operation of Liquefied Natural Gas (LNG) fuelled vessels.
The project, which was selected for funding under the 2011 TEN-T Annual Call,
will examine the technical requirements, regulations and environmental opera-
tion permits that need to be met in order to shift from traditionally fuelled en-
gines to LNG. LNG is rapidly emerging as a cheaper and more environmentally
friendly fuel for the maritime sector and its uptake is encouraged by the Euro-
pean Union.
Specific aspects related to the manufacturing, conversion, certification and
operation phases of a LNG fuelled vessel will be analysed. These results will be
exchanged with other ongoing LNG-related projects as well as with the Euro-
pean Maritime Safety Agency. The project will be implemented in a partnership
with stakeholders consisting of ship-owners, cargo owners, LNG suppliers, ports
and marine equipment manufacturers.
The project is set to be completed by the end of 2014.
Worldmaritimenews - Jan 30th, 2013
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REPORT 30 OF 01-03-2013
Annex Tables - Summary of Ship building Activity*
Table 1.1 – Orderbook by Ship Type 2012
ORDERBOOK AS PER END OF DECEMBER 2012 BY SHIPTYPES
TYPES NO. 1.000 GT % 1.000 CGT % 1.000 DWT %
Crude Oil Tanker 186 18,906 11.8 6,174 7.0 36,117 16.3
Oil Products Tanker 278 3,492 2.2 2,411 2.7 5,763 2.6
Chemical Tanker 288 5,173 3.2 3,572 4.0 8,361 3.8
Other Liquids 3 1 0.0 5 0.0 1 0.0
A Tankers 755 27,572 17.2 12,162 13.7 50,242 22.7
Bulk Dry 1,410 61,155 38.1 26,480 29.9 111,325 50.4

Bulk Dry / Oil 0 0 0.0 0 0.0 0 0.0
Self-Discharging Bulk Dry 9 331 0.2 159 0.2 472 0.2
Other Bulk Dry 44 1,238 0.8 577 0.7 1,583 0.7
B Bulk Carriers 1,463 62,724 39.1 27,216 30.7 113,380 51.3
General Cargo 506 4,602 2.9 4,105 4.6 6,662 3.0

Container 476 35,669 22.2 17,620 19.9 38,896 17.6
Refrigerated Cargo 3 16 0.0 27 0.0 20 0.0
Ro-Ro Cargo 122 3,905 2.4 2,332 2.6 1,750 0.8
Other Dry Cargo 29 653 0.4 457 0.5 795 0.4
C Dry Cargoes 1,136 44,845 28.0 24,541 27.7 48,123 21.8
LNG Tanker 86 9,253 5.8 7,251 8.2 7,118 3.2

LPG Tanker 94 1,701 1.1 1,417 1.6 1,909 0.9
D Gastankers 180 10,954 6.8 8,668 9.8 9,027 4.1
Passenger/Ro-Ro Cargo 69 360 0.2 530 0.6 63 0.0

Passenger (Cruise) 25 2,491 1.6 2,540 2.9 195 0.1
Other Passenger Vessels/Ferries 31 72 0.0 112 0.1 16 0.0
E Ferries / Passenger Ships 125 2,923 1.8 3,182 3.6 274 0.1
Fish Catching 117 153 0.1 407 0.5 0 0.0

Other Fishing 23 41 0.0 106 0.1 0 0.0
Offshore Supply 710 1,887 1.2 4,093 4.6 0 0.0
Other Offshore 243 8,288 5.2 6,081 6.9 0 0.0
Research 54 274 0.2 415 0.5 0 0.0
Towing / Pushing 528 197 0.1 900 1.0 0 0.0
Dredging 23 157 0.1 230 0.3 0 0.0
Other Activities 193 352 0.2 673 0.8 0 0.0
F Other Non Cargo Vessels 1,891 11,349 7.1 12,905 14.6 0 0.0
TOTAL 5,550 160,368 100.0 88,674 100.0 221,044 100.0
PAGE 34 OF 43
REPORT 30 OF 01-03-2013
Table 2 – Orderbook by Country 2012
ORDERBOOK AS PER END OF DECEMBER 2012 BY COUNTRIES
COUNTRY NO. 1.000 GT % 1.000 CGT %
BELGIUM 1 1 0.0 2 0.0

BULGARIA2) 5 17 0.0 28 0.0
CZECH REPUBLIC 9 19 0.0 33 0.0
DENMARK2) 8 2 0.0 11 0.0
ESTONIA 0 0 0.0 0 0.0
FINLAND2) 7 221 0.1 255 0.3
FRANCE2) 7 401 0.3 389 0.4
GERMANY2) 37 1,208 0.8 1,199 1.4
GREECE2) 2 2 0.0 6 0.0
ITALY2) 35 870 0.5 958 1.1
LATVIA 3 6 0.0 15 0.0
LITHUANIA2) 16 43 0.0 83 0.1
NETHERLANDS2) 63 216 0.1 317 0.4
POLAND2) 58 183 0.1 305 0.3
PORTUGAL2) 4 46 0.0 40 0.0
ROMANIA2) 84 774 0.5 685 0.8
SLOVAKIA 0 0 0.0 0 0.0
SLOVENIA 0 0 0.0 0 0.0
SPAIN2) 57 245 0.2 404 0.5
SWEDEN 0 0 0.0 0 0.0
UNITED KINGDOM2) 14 17 0.0 45 0.1
A EU-27 410 4,271 2.7 4,775 5.4
ALBANIA 2 0 0.0 3 0.0

CROATIA2) 16 178 0.1 175 0.2
NORWAY2) 40 163 0.1 274 0.3
RUSSIA 86 371 0.2 477 0.5
SERBIA/MONTENEGRO 5 5 0.0 12 0.0
TURKEY 145 551 0.3 772 0.9
UKRAINE 25 94 0.1 156 0.2
B OTHER EUROPEAN 319 1,362 0.8 1,869 2.1
CESA2) - MEMBERS 453 4,586 2.9 5,174 5.8
C JAPAN 740 25,828 16.1 12,539 14.1
D KOREA (SOUTH) 764 52,109 32.5 27,224 30.7
E CHINA 1,927 63,475 39.6 31,839 35.9
BRAZIL 155 4,031 2.5 2,566 2.9

INDIA 192 1,305 0.8 1,168 1.3
INDONESIA 96 254 0.2 410 0.5
MALAYSIA 206 203 0.1 507 0.6
PHILIPPINES 48 2,482 1.5 1,149 1.3
SINGAPORE 83 351 0.2 486 0.5
TAIWAN 33 1,560 1.0 853 1.0
USA 123 784 0.5 943 1.1
VIETNAM 205 1,357 0.8 1,226 1.4
OTHERS 249 996 0.6 1,120 1.3
F REST OF WORLD 1,390 13,323 8.3 10,428 11.8
WORLD TOTAL1) 5,550 160,368 100.0 88,674 100.0
PAGE 35 OF 43
REPORT 30 OF 01-03-2013
Table 3 – New Orders by Country 2012
NEW ORDERS JANUARY - DECEMBER 2012 BY COUNTRIES
BELGIUM 0 0 0.0 0 0.0

BULGARIA 2) 2 6 0.0 13 0.1
DENMARK 2) 5 1 0.0 7 0.0
ESTONIA 0 0 0.0 0 0.0
FINLAND2) 2 109 0.3 123 0.5
FRANCE 2) 6 229 0.6 199 0.8
GERMANY 2) 10 410 1.1 407 1.6
GREECE 2) 0 0 0.0 0 0.0
ITALY 2) 4 110 0.3 156 0.6
LATVIA 2 2 0.0 6 0.0
LITHUANIA 2) 5 13 0.0 32 0.1
NETHERLANDS 2) 19 48 0.1 71 0.3
POLAND2) 25 73 0.2 123 0.5
PORTUGAL2) 0 0 0.0 0 0.0
ROMANIA 2) 43 226 0.6 268 1.1
SLOVAKIA 0 0 0.0 0 0.0
SLOVENIA 0 0 0.0 0 0.0
SPAIN2) 19 91 0.2 154 0.6
SWEDEN 0 0 0.0 0 0.0
UNITED KINGDOM 2) 6 2 0.0 8 0.0
A EU-27 148 1,320 3.4 1,567 6.3
ALBANIA 0 0 0.0 0 0.0

CROATIA 2) 7 46 0.1 68 0.3
NORWAY 2) 36 136 0.3 224 0.9
RUSSIA 11 61 0.2 84 0.3
TURKEY 48 112 0.3 206 0.8
UKRAINE 6 23 0.1 40 0.2
B OTHER EUROPEAN 108 378 1.0 622 2.5
CESA2) - MEMBERS 189 1,500 3.9 1,853 7.5
C JAPAN 361 8,422 21.6 4,396 17.8
D KOREA (SOUTH) 231 12,065 31.0 7,113 28.8
E CHINA 651 14,371 36.9 8,555 34.6
BRAZIL 66 1,057 2.7 861 3.5

INDIA 37 143 0.4 179 0.7
INDONESIA 47 29 0.1 88 0.4
MALAYSIA 106 50 0.1 178 0.7
PHILIPPINES 8 405 1.0 235 1.0
SINGAPORE 36 188 0.5 197 0.8
TAIWAN 9 63 0.2 61 0.2
USA 56 256 0.7 334 1.4
VIETNAM 53 112 0.3 168 0.7
OTHERS 60 69 0.2 158 0.6
F REST OF WORLD 478 2,372 6.1 2,459 10.0
WORLD TOTAL1) 1,977 38,928 100.0 24,713 100.0
PAGE 36 OF 43
REPORT 30 OF 01-03-2013
Table 4- New Orders by Ship Type 2012
NEW ORDERS JANUARY - DECEMBER 2012 BY SHIPTYPES
TYPES NO. 1.000 GT % 1.000 CGT % 1.000 DWT %
Crude Oil Tanker 48 4,293 11.0 1,481 6.0 8,157 16.7

Oil Products Tanker 115 1,777 4.6 1,093 4.4 2,990 6.1
Chemical Tanker 103 2,210 5.7 1,444 5.8 3,583 7.4
Other Liquids 0 0 0.0 0 0.0 0 0.0
A Tankers 266 8,280 21.3 4,018 16.3 14,730 30.2
Bulk Dry 313 12,251 31.5 5,567 22.5 21,875 44.9

Bulk Dry / Oil 0 0 0.0 0 0.0 0 0.0
Self-Discharging Bulk Dry 2 64 0.2 32 0.1 72 0.1
Other Bulk Dry 20 116 0.3 91 0.4 150 0.3
B Bulk Carriers 335 12,431 31.9 5,690 23.0 22,097 45.4
General Cargo 114 566 1.5 598 2.4 727 1.5

Container 107 5,413 13.9 2,958 12.0 5,966 12.2
Refrigerated Cargo 4 22 0.1 37 0.1 27 0.1
Ro-Ro Cargo 63 2,406 6.2 1,383 5.6 1,055 2.2
Other Dry Cargo 10 173 0.4 128 0.5 193 0.4
C Dry Cargoes 298 8,580 22.0 5,104 20.7 7,968 16.4
LNG Tanker 32 3,494 9.0 2,720 11.0 2,654 5.4

LPG Tanker 51 1,014 2.6 818 3.3 1,163 2.4
D Gastankers 83 4,508 11.6 3,538 14.3 3,817 7.8
Passenger/Ro-Ro Cargo 31 138 0.4 220 0.9 28 0.1

Passenger (Cruise) 8 744 1.9 747 3.0 55 0.1
Other Passenger Vessels/Ferries 13 32 0.1 47 0.2 7 0.0
E Ferries / Passenger Ships 52 914 2.3 1,014 4.1 90 0.2
Fish Catching 85 84 0.2 241 1.0 0 0.0

Other Fishing 12 18 0.0 49 0.2 0 0.0
Offshore Supply 309 706 1.8 1,573 6.4 0 0.0
Other Offshore 119 2,984 7.7 2,449 9.9 0 0.0
Research 15 116 0.3 152 0.6 0 0.0
Towing / Pushing 312 104 0.3 501 2.0 0 0.0
Dredging 8 40 0.1 68 0.3 0 0.0
Other Activities 83 164 0.4 315 1.3 0 0.0
F Other Non Cargo Vessels 943 4,216 10.8 5,348 21.6 0 0.0
TOTAL 1,977 38,928 100.0 24,713 100.0 48,704 100.0
PAGE 37 OF 43
REPORT 30 OF 01-03-2013
Table 5 – Completions by Country 2012
COMPLETIONS JANUARY - DECEMBER 2012 BY COUNTRIES
BELGIUM 0 0 0.0 0 0.0

BULGARIA2) 1 32 0.0 16 0.0
DENMARK2) 7 32 0.0 29 0.1
ESTONIA 2 0 0.0 2 0.0
FINLAND2) 6 74 0.1 82 0.2
FRANCE2) 8 144 0.2 152 0.3
GERMANY2) 19 448 0.5 473 1.0
GREECE2) 1 1 0.0 3 0.0
ITALY2) 11 327 0.3 368 0.8
LATVIA 5 6 0.0 18 0.0
LITHUANIA2) 5 6 0.0 17 0.0
NETHERLANDS2) 38 106 0.1 172 0.4
POLAND2) 40 77 0.1 155 0.3
PORTUGAL2) 2 2 0.0 4 0.0
ROMANIA2) 44 437 0.5 368 0.8
SLOVAKIA 3 8 0.0 12 0.0
SLOVENIA 0 0 0.0 0 0.0
SPAIN2) 29 61 0.1 120 0.3
SWEDEN 0 0 0.0 0 0.0
UNITED KINGDOM2) 3 1 0.0 4 0.0
A EU-27 225 1,764 1.9 1,998 4.2
ALBANIA 1 0 0.0 1 0.0

CROATIA2) 12 200 0.2 144 0.3
NORWAY2) 23 42 0.0 90 0.2
RUSSIA 29 122 0.1 161 0.3
TURKEY 60 190 0.2 256 0.5
UKRAINE 13 32 0.0 59 0.1
B OTHER EUROPEAN 138 586 0.6 711 1.5
CESA2) - MEMBERS 249 1,990 2.1 2,197 4.6
C JAPAN 587 17,512 18.4 8,415 17.5
D KOREA (SOUTH) 471 31,369 32.9 13,393 27.9
E CHINA 1,441 38,997 40.9 19,701 41.1
BRAZIL 25 218 0.2 194 0.4

INDIA 66 216 0.2 293 0.6
INDONESIA 143 107 0.1 293 0.6
MALAYSIA 190 97 0.1 324 0.7
PHILIPPINES 38 2,507 2.6 904 1.9
SINGAPORE 43 72 0.1 143 0.3
TAIWAN 29 784 0.8 462 1.0
USA 61 142 0.1 235 0.5
VIETNAM 102 873 0.9 672 1.4
OTHERS 96 96 0.1 230 0.5
F REST OF WORLD 793 5,112 5.4 3,750 7.8
WORLD TOTAL1) 3,655 95,339 100.0 47,967 100.0
PAGE 38 OF 43
REPORT 30 OF 01-03-2013
Table 6 – Completions by Ship Types 2012
*All tables’ data source: IHS Fairplay at the end of reporting period
1) Difference due to rounding
2) CESA members
PAGE 39 OF 43
REPORT 30 OF 01-03-2013
Glossary and Abbreviations:

BDI – the Baltic Dry Index, it tracks changes in freight rates for dry bulk cargoes and is published daily by the
Baltic Exchange in London.
Bunker Fuel – type of fuel used aboard ships.
Cabotage - coastal trade, the movement of goods by ship between ports on the same coast or between
ports within the same country. Many nations, including the United States, have cabotage laws which re-
quire national flag vessels only to provide shipments between domestic ports.
Capesize – a dry bulk vessel around 180,000 dwt or with a beam that prevents passage via the Panama
Canal, forcing the ship to pass around Cape Horn.
Cargo (also freight) – in maritime context, goods loaded into a ship and transported over a certain distance
usually for commercial gain.
CESA members - Croatia (from 2002), Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Nor-
way, Poland, Portugal, Romania (from 2000), Spain, United Kingdom and Lithuania, Bulgaria (from 2009).
Charter - hiring out of a ship by a shipowner.
Charterer - the person who has chartered the ship for a specified voyage or period of time.
Charter rate - the tariff applied for chartering tonnage in a particular trade. It depends on the charter type:
 Spot charter – contract for the carriage of a single cargo from one specified port to another in the
immediate future (abt. 2 months). Spot charters can be spot voyage charters or spot time charters.
 Voyage Charter - the charterer pays for the use of the vessel's cargo spaces for one or more voy-
ages. Payment is calculated per ton of goods carried. The owner pays voyage expenses.
 Time charter - contract to charter a vessel over a fixed period of time at a set daily rate. Under time
charters, the charterer pays voyage expenses.
 Pool charter - a time charter with a floating charter rate. The actual charter hire the pool vessel re-
ceives is its corresponding share of all the income generated by all vessels in the pool.
 Bareboat Charter - contract to hire an empty ship, with all operating costs covered by the charter-
er.
CGT - Compensated Gross Tonnes - International unit of measure that facilitates the comparison of different
shipyards’ production regardless of the types of vessel produced. The CGT of a ship is calculated using a
table of conversion factors published by OECD. The conversion factors vary with ship type.
Classification Society - any organization that certifies seagoing vessels and their equipment for compliance
with standardized rules regarding construction and maintenance and carries out surveys at regular intervals
of time and acts on behalf of the flag state's maritime authorities.
Clarkson’s newbuilding price - The data reported represents the selection of ships covered by the Broker
Clarksons. The Ship Price Index of Clarkson’s historical data covers various sizes of the standard shiptypes.
The Index only presents anticipated prices (ex ante) not effective prices (ex post). The methodology used
by the brokers is based on confirmed contracts where they exist and brokers estimations for ship types
where no transactions were registered. It should be also noted that the sizes per ship category have in-
creased over time and that this creates as an “inbred inflation”. Therefore only the trends should be consid-
ered as meaningful.
Deliveries - volume of completed ships.
Demolition – See ship breaking.
Dry dock - a facility for taking a ship out of water, an operation also know as “stemming” a ship. A drydock
is normally either a graving dock (a permanent civil engineering structure) or a floating dock.
DWT – deadweight tonnes, roughly equivalent to a ships carrying capacity measured in metric tonnes.
Freight rate - the charge made for the transportation of freight.
Flag of convenience (FOC) - term used about countries allowing unlimited registration of foreign-owned
ships in order to achieve low wage levels and low or no taxation payable to the flag state.
GT – Gross Ton; unit of 100 cubic feet or 2.831 cubic meters, used in arriving at the calculation of gross ton-
nage.
Hot rolled plate – steel plates of the type purchased for building the hull of the ships and other heavy con-
structions.
Hull - the body of a vessel, a steel structure not including any equipment and machinery.
IHS Fairplay (former Lloyd’s Register-Fairplay) – supplier of maritime data, including shipbuilding statistics. The
definition of the ships taken into account in the statistics of IHS Fairplay is commercial, seagoing vessels, self
propelled and of more than 100 GT. The coverage of the mega-yachts in the database is not homogenous
due to the fact that registration/classification is not mandatory for a non commercial (private) use. Finally
this definition excludes naval ships.
IMO – International Maritime Organization, the maritime authority of UN tasked with the coordination of
international maritime safety and related practices.
Keel - the backbone of a ship formed from a series of connected plates running fore and aft on the bottom
of the centre line of the ship.
Knot - unit for measuring speed, equal to one nautical mile per hour or 1.852 km/h.
Lay-Up - temporary cessation of trading of a ship by its owner i.e. during a period when there is a surplus of
ships (or over-tonnage) in relation to the level of available cargoes.
Liner - A vessel, usually containership advertising sailings on a specified trade route on a regular basis
PAGE 40 OF 43
REPORT 30 OF 01-03-2013
Merchant shipbuilding – building of commercial vessels
New Order – announcement and confirmation of a firm newbuilding contract
Orderbook – the vessels on the shipyards’ books between the new order and delivery stages.
Owner – in the maritime context, the owner of a ship, or shipowner.
Ship delivery – handover of a vessel by the yard to the owner after the completing the construction
Ship Types – by segments or main shiptypes used in CESA Market Monitoring Report:
1. Mass segments - refers to standard vessels characterized by large market volumes, series production,
standardization, limited engineering content and a more limited number of subcontractors. Typical vessels:
Bulk carriers – all vessels constructed and equipped to transport dry, homogeneous, unpacked cargo in
its holds, for example Iron ore, limestone, grain, coal, fertilizers.
Containerships - ships equipped with container cells for the purpose of transporting cargo.
Oil Tankers - ships fitted with tanks to carry carrying either crude oil or oil derivatives.
2. Niche segments – refers to complex vessels characterized by smaller market volumes, small series with less
repetition and more prototypes and sister ships, tailor-made production, substantial engineering content,
knowledge-based production and a relatively large number of subcontractors. Typical vessels:
Chemical tankers – ships designed to carry relatively small parcels of higher value chemicals, such as
acids or polymers or cargos such as wine, molasses and similar products. Some chemical tankers are
equipped with stainless steel tanks and may carry different cargoes simultaneously, with each tank hav-
ing its own pump and pipeline system for loading and unloading.
Gas Carriers or Gas Tankers – vessels specially constructed to carry gasses in tanks:
 LNG tankers - carry liquid methane in refrigerated tanks at normal atmospheric pressure
 LPG tankers - carry butane, propane etc in pressurised tanks at ambient temperature.
General Cargo ships – include a large number of specialized vessels designed to carry special, hetero-
geneous cargoes, including but not limited to:
 Feeder Vessels - short–sea vessels which transfers cargo between a hub port and smaller ports.
 Multipurpose ships – vessels that carry containers together with other cargo.
 Reefers - vessels designed to carry goods requiring refrigeration.
 Timber carriers, Pallet carriers, Car carriers, Cattle carriers etc
Other Non Cargo Carrying Vessels include but are not limited to:
 AHT –Anchor Handling Tug, vessels employed in the offshore activities moving anchors and perform-
ing towing operations. AHT with combined characteristics of supply vessels is an AHTS.
 OSV - Offshore service vessels or offshore support vessel - terms for specialized vessels used in activi-
ties connected to the exploration, development and production of oil and gas at sea.
 Special-purpose vessels – vessels not used for transport but designed to perform specific tasks (e.g.
dredgers, tugs, pilot boats, pollution control boats, rescue boats, cable or pipe layers, research or
seismic vessels, survey vessels, ice breakers, fishing vessels etc)
 Tugs - a small vessel equipped with powerful diesel engines to tow or push large ships or barges
Passenger Ships:
 Cruise ship - passenger vessel carrying passengers on trips between various ports, normally with the
same starting and ending port with high standards of accommodation and recreation.
 Ferry – vessel used to transport passengers or/and goods across a body of water in short periods of
time. The market divides into three main groups: Roll-on-roll-off (roro) ferries - tend to be large ships,
often operating on relatively short routes such as across the English Channel or the between Greek
islands; Cruise-ferries - offer a higher standard of passenger accommodation for longer routes and
some of the facilities offered by cruise ships; Fast ferries that tend to be smaller, may have multiple
hulls (catamarans) and are often built from aluminium rather than steel.
Shipbuilding Area – geographical area with a high concentration of shipbuilding activities
Shipbuilding - the construction of a vessel including the installation of machinery and equipment.
Ship Maintenance, Repairing and Conversion - any repair of a vessel including, but not restricted to, altera-
tions, conversions, installations, cleaning, painting, and maintenance work.
Ship breaking - breaking down of a vessel's structure for the purpose of scrapping the vessel, including the
removal of gear, equipment or any component part of a vessel. Also referred to as demolition or recycling.
TEU – Twenty Foot Equivalent Unit, a measurement of cargo-carrying capacity of a containership.
Ton–Mile - measure used in the economics of transportation to designate one ton being moved one mile.
PAGE 41 OF 43
CESA SHIPBUILDING MARKET MONITORING
REPORT 17 OF 15-12-2009
Notes:
PAGE 42 OF 43
Ships and Maritime tel.: +32 2 230 2791
Equipment Association fax.: +32 2 230 4332
Rue Marie de Bourgogne 52-54 info@seaeurope.eu
1000 Brussels, Belgium www.seaeurope.eu

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SHIPBUILDING MARKET MONITORING

Report N° 30 – March 2013

 In 2012 new orders decreased by 20% compared to 2011 to 24.7M

 EC and the industry launch LeaderSHIP2020 strategy (46)

Figure 1.1 – Summary of activity in CESA shipyards

Data source: IHS Fairplay

Figure 1.2 – Summary of activity in Chinese shipyards

Data source: IHS Fairplay

Figure 1.3 – Summary of activity in Japanese shipyards

Data source: IHS Fairplay

Figure 1.4 – Summary of activity of South Korean shipyards

Data source: IHS Fairplay

Figure 1.5 – Summary of activity of EU-27 shipyards

Data source: IHS Fairplay

Figure 1.6 – Summary of activity of World shipyards

Data source: IHS Fairplay

Figure 1.7 – New Orders by Main Shipbuilding Areas

Data source: IHS Fairplay

Figure 1.8 – New Orders by Main Ship Types

Data source: IHS Fairplay

Figure 1.9 – Completions by Main Shipbuilding Areas

Data source: IHS Fairplay

Figure 1.10 – Completions by Main Ship Types

Data source: IHS Fairplay

Figure 1.11 – World Orderbook by Area

Data source: IHS Fairplay

Figure 1.12 – World Orderbook by Ship Types

Data source: IHS Fairplay

Figure 2.1 – Monthly Newbuilding Price Index

Source: CESA based on Clarkson’s and x-rates.com data

Figure 2.2 – Evolution of Tankers Time Charter Rates

Data Source: Drewry

Figure 2.3 – Evolution of Bulk Carriers Charter Rates

Data source: Drewry

Figure 2.4 – Evolution of Containers Time Charter Rates (for 1 year)

Data source: Drewry

Figure 2.5 – Bunker Fuel and crude Oil prices

Data source: BunkerWorld.com and World Bank

Figure 2.6 – Ship Scrapping

Data source: Clarksons

Figure 2.7 – Materials Price

Data source: MEPS.co.uk

Figure 2.8 - Exchange Rates evolution

Data source: X-Rates.com

PRICES, FUEL, FREIGHT & EXCHANGE RATES MARKETS

II. DEVELOPMENTS BY SEGMENTS

Annex Tables - Summary of Ship building Activity*

Table 1.1 – Orderbook by Ship Type 2012

ORDERBOOK AS PER END OF DECEMBER 2012 BY SHIPTYPES

TYPES NO. 1.000 GT % 1.000 CGT % 1.000 DWT %

A Tankers 755 27,572 17.2 12,162 13.7 50,242 22.7

Bulk Dry 1,410 61,155 38.1 26,480 29.9 111,325 50.4

B Bulk Carriers 1,463 62,724 39.1 27,216 30.7 113,380 51.3

General Cargo 506 4,602 2.9 4,105 4.6 6,662 3.0

C Dry Cargoes 1,136 44,845 28.0 24,541 27.7 48,123 21.8

LNG Tanker 86 9,253 5.8 7,251 8.2 7,118 3.2

D Gastankers 180 10,954 6.8 8,668 9.8 9,027 4.1

Passenger/Ro-Ro Cargo 69 360 0.2 530 0.6 63 0.0

Fish Catching 117 153 0.1 407 0.5 0 0.0

TOTAL 5,550 160,368 100.0 88,674 100.0 221,044 100.0

Table 2 – Orderbook by Country 2012

ORDERBOOK AS PER END OF DECEMBER 2012 BY COUNTRIES

COUNTRY NO. 1.000 GT % 1.000 CGT %