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HANSA 02-2017

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Schiffstechnik | Ship Technology Ships Made in Germany The times they are a-changin’ Last year in global shipping and shipbuilding was characterized by market collapse and consolidation. But with the right strategy it is possible to get back into shape as the example »Searoad Mersey II« shows. By Reinhard Lüken Who would have thought that Bob Dylan would ever receive the Nobel Prize for Literature? The times, they are a-changin’ – indeed! It has been more than fifty years since Dylan came up with this line and today it seems to hold true more than ever. Look at the maritime industry. A year marked by market collapse and consolidation has passed. The times when shipping came close to owning a money-printing machine are over, and the opposite is true today: Being able to cut the losses somewhat can be considered an achievement, and survival is the rule of the game. The same applies to most parts of the global shipbuilding industry. This conservative industry with its long tradition and established routines is facing tough challenges. Overcapacities in almost all volume markets are swallowing the earnings and with it the ability to invest. At the same time, both the public and the Reinhard Lüken, General Manager of the German Shipbuilding and Ocean Industries Association (VSM) Photo: VSM Instandhaltung aller Schiffshaupt- und Hilfsdiesel- Motoren bis 7.000 kW Motoren- und Ersatzteile im Tausch Service für Abgasturbolader und Einspritzpumpen Mechanische Bearbeitung und Fertigung August Storm GmbH & Co. KG · August-Storm-Straße 6 · 48480 Spelle Fon +49 5977 73-0 · Fax +49 5977 73-138 · regulators expect the sector to clean up and reduce its footprint in the environment. However, this can only be accomplished by investing in new, cleaner technology. In this respect, the ship of the year 2016 is a great choice: The »Searoad Mersey II« is a prime example of what can be achieved when effciency, customer focus and environmental responsibility combine. To advance towards these objectives during these challenging times takes true pioneer spirit, courage and commitment. SeaRoad, the proud owner of the chosen vessel, is living up to its values of delivering the highest performance standards - and expects the same of its business partners. The fact that these partners have been found in Germany is not a coincidence. It is our focus and essential philosophy to provide the best products for even the most demanding costumers. We are convinced that this business model will be a successful one: offering excellence instead of commodities, expertise instead of corner-cutting tricks, and effciency instead of blind cost reduction. The ship of the year therefore stands not only for a masterpiece of maritime engineering and innovation but also for a role model of business ethics, which should ideally spread to all parts of the maritime business. The times, they are a-changin’ – let’s hope they will! M 40 HANSA International Maritime Journal – 154. Jahrgang – 2017 – Nr. 2

Schiffstechnik | Ship Technology Dark clouds over global shipbuilding An LNG tanker at DEME shipyard in Asia Photo: Wikipedia The global number of newbuilding contracts collapsed dramatically in 2016. Shipyards are struggling to attract new orders. The demand for most types of cargo vessels is extremely low but some niche markets still showing healthy orderbooks The maritime industry comprises a variety of diverse market segments. While interdependencies between these market segments are limited, the unusual parallel downward trend across several segments, especially cargo markets but also the energy sector, continued in 2016. The declining demand for tankers, bulkers as well as container vessels is extreme. In the period from January to November 2016 the number of new orders for cargo ships shrunk by more than 80% compared to 2015. The acute weakness of these mass markets is equally felt in the respective, mainly Asian shipyards as well as the entire, worldwide supply chain. This is aggravated by the fact that the offshore-market is at a standstill and with the oil price remaining low an imminent recovery is not expected. The offshore oil & gas production will revive at some point and will remain a major maritime market for the foreseeable future. The same goes for the deconstruction of aging, obsolete or inactive offshore assets. IHS Markit expects an additional 2,000 offshore projects to be decommissioned between 2021 and 2040 with expenditures of 210 bn $ between 2010 and 2040. The current low oil price also provides little incentive to replace vessels of the existing fleets with more • NEUBAU • UMBAU • REPARATUR TAILOR-MADE IN GERMANY PETERS Werft GmbH • Tel.:+49 4829-710 • HANSA International Maritime Journal – 154. Jahrgang – 2017 – Nr. 2 41

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