HANSA 04-2021

SHIPS MADE IN GERMANY

SHIPS MADE IN GERMANY Crisis as an opportunity? The Covid-19 crisis has hit the cruise-oriented German shipbuilding market like a bolt out of the blue – only adding to other challenges. The government bets on innovations for a restart after the pandemic for the sector to stay future-proof By focusing on highly complex market segments, Germany and Europe have been able to decouple themselves from the negative trend that has been ongoing since 2010. »With Covid-19, this momentum took a full about-face. The collapse of one of the most profitable market segments of the maritime economy, cruise tourism, surpasses the worst-case scenarios of all risk analysts,« the German Shipbuilding and Ocean Industries Association, VSM, says. A look at the first nine months of 2020 illustrates just how hard the industry has been hit. While China suffered a 14 % year-on-year slump in new orders (by GT), South Korea was down 54 %, Japan 56 % and Europe as much as 64 % over the same period. Global order intake decreased by 36 %. Cruise ship construction in Germany in particular has been hit hard, new orders are not expected until 2023 at the earliest, and possibly not until 2024 as customers are believed to reduce their debt before investing in new ships. Apart from the Covid crisis, the industry is undergoing a transformation due to growing environmental 36 HANSA – International Maritime Journal 04 | 2021

SHIPS MADE IN GERMANY requirements. In the run-up to the National Maritime Conference to be held in May, the German government’s Maritime Coordinator, Norbert Brackmann, presented the »7th Report on the Development and Future Prospects of the Maritime Industry in Germany«. It shows the challenges facing the maritime industry. The Ministry of Economics and Technology is convinced that the sector can only remain a global technology leader and crisis resilient after overcoming the pandemic »if it accelerates and is encouraged in its efforts toward digital and ecological transformation.« The government is providing 1 bn € to support maritime R&D, fleet renewal of government vessels, conversion to environmentally friendly propulsion systems and bunkering vessels for alternative fuels etc. Other countries’ strategic industrial agendas are a further challenge. »Aggressive competitors from Asia threaten not only Germany as a maritime location, but Europe as a whole. In particular, the Chinese strategy of top subsidies threatens overcapacities in the cruise ship construction market segment – similar to the situation in the past with cargo, container or tanker ships,« the Brackmann report says. With the Industrial Strategy 2030 the government aims to improve conditions, strengthen new technologies, maintain technological sovereignty and to adapt EU competition and state aid law to the changing conditions. Many challenges, no doubt about it. Still, the crisis can be seen as an opportunity for the sector. Besides innovation and governmental support, consolidation, e.g. the collaboration of German Naval Yards and Lürssen in the military sector, are making shipbuilding fit for the future. Notwithstanding the disruptions of 2020, German shipyards have delivered interesting newbuilds such as Abeking & Rasmussen’s superyacht »Soaring«, Fassmer’s LNG-powered research vessel »Atair« and the SAR vessel »Hamburg«, FSG’s »Liekut«, GNYK’s corvette »INS Magen«, Lürssen’s superyachts »Sheherazade« and »Avantage«, Meyer Werft’s cruise ships »Iona« and »Spirit of Adventure«, Nobiskrug’s yacht »Artefact« or TMKS/ Blohm+Voss’ frigate »Nordrhein-Westfalen«, to name just a few. Check out our »Ships made in Germany 2020« list on the following pages for the full picture! fs HANSA – International Maritime Journal 04 | 2021 37