Norwegian Shipowners: Tight Money Prolongs Maritime Downturn in 2016

Image Courtesy: Norwegian Shipowners' Association

2016 is to be an extremely difficult year for many segments of the maritime industry, says the Norwegian Shipowners’ Association in its yearly outlook report, anticipating weaker profitability, job losses and tighter capital access. 

Expectations for developments in the capital market through 2016 are largely negative. Almost no shipowners anticipate improved capital availability, and 55 per cent expect the situation to worsen,” said the report, pointing out that offshore service shipowners are the most pessimistic regarding capital availability.

Taking into account the dramatic decline in oil price and general fall in raw material prices, the association says these factors can cause weakening of many links in Norwegian maritime value chain.

Shipping is the country’s second-largest export industry, with total value creation in 2014 of approx. USD 23 billion (NOK 190 billion) and 100,000 employees.

The Norwegian Shipowners have recorded a drop of 15 percent in ship orders by January 2016, compared to the previous year. The orders have been primarily related to offshore oil and gas, and the decline is related to the slowdown in offshore activity, according to the association.

The report also said that shipowners anticipate lower turnover in 2016, expecting it to fall by 3 percent. Positive development in turnover is expected by short sea and deep sea shipowners, while the negative one is to be seen in the offshore segment.

Weaker operating results are to be expected in 2016 as well, according to the association.

A combined number of 4,000-4,500 layoffs and terminations are anticipated in 2016, compared with 7,300 in 2015. 3,150 jobs were cut in 2015 in the offshore service segment, while shipowners expect further 1,000-1,500 jobs to disappear in 2016,” the report said, adding that available training positions are to be reduced, too.

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 >