European Shipyards Overtake Asian Counterparts in Q1

Image Courtesy: VSM

Shipyards in Europe received in the first quarter of 2016 more orders than their competitors in Asia, German Shipbuilders and Ocean Industries Association Verband für Schiffbau und Meerestechnik (VSM) reports.  

Namely, out of USD 6.5 billion worth orders on a global scale placed in the first quarter of this year, European shipyards won orders worth USD 3.7 billion, more than 50 percent, with the majority orders booked by the cruise ship construction sector in Europe.

Yards in Germany have experienced a major boost, with Meyer Werft winning an order from Saga Cruises and Disney Cruise Line for up to four ships in total. Italian shipbuilding major Fincantieri also kept itself busy working on deliveries of four new ships to Carnival and receiving orders for four new cruise ships, to be built for Costa Asia for deployment in China, and one for P&O Cruises Australia and Princess Cruises respectively. In addition, at the end of March Norwegian Cruise Line Holdings placed an order to construct a sister ship to Seven Seas Explorer for its Regent Seven Seas Cruises with Fincantieri.

The ordering streak continues into the second quarter as well. Earlier this month, Malaysian Genting Group ordered ten cruise ships from three German shipyards – Wismar, Warnemünde und Stralsund. The contracts’ value amounts to EUR 3.5 billion (USD 3.93 billion).

According to Reinhard Lüken, VSM’s CEO, this is the first time the turnaround in newbuilding orders has happened in a long time.

The situation in the shipbuilding market has drastically changed when compared to 2015. Specifically, South Korea, the world’s top shipbuilding nation won 30 percent of USD 80 billion worth newbuilding orders in the previous year. However, the slowdown in the global maritime industry has prompted owners to abstain from new orders as they work to cut costs. As a result, in the first quarter of 2016, Korea won only six percent of total orders.

The nation’s Big Three shipbuilders Hyundai Heavy Industries, Daewoo Shipbuilding and Marine Engineering and Samsung Heavy Industries have booked losses of up to USD 6.7 billion.

Due to the heavy losses, the three yards have launched massive restructuring programs which include layoffs and asset sale aimed at bolstering their liquidity as they struggle to secure more orders.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >