NDTV Profit’s Post

We are about to start the 138th meeting of the OECD - OCDE #Shipbuilding Committee. Shipbuilding markets face complex times. Ship completions grew by 11.4% by CGT in 2023. Demand for ships continued the healthy flow in 2023 and is expected to hold steady of 80 million GT in 2024, driven by an rise in merchandise trade and fleet renewals. Recent disruption in the Red Sea may have an impact on this. Ship prices increased by 10.2 % in 2023. The position of China in global shipbuilding market rose to a record of 59.7% by CGT of global ship contracting in 2023 and increasingly extending to high technology sectors such as marine equipment. At the same time, the decarbonisation of ships is progressing, although not at a fast enough pace to reach the climate objectives set by the IMO, which is expected to sharpen its regulatory measures in the coming years. Countries increasingly enact policies to support decarbonisation, but they focus mostly on maritime transportation and not ship construction. More generally, the number of policies put in place by countries to support their shipbuilding industries has increased, in particular in China. The combination of pursuing a level playing field in shipbuilding and decarbonisation strengthen the relevance of OECD’s work on shipbuilding.

Fantastic investment for Scotland

Great article Matt. It’s good to see that you consider investing sustainably is your fiduciary duty. Also good to see IMO using its regulatory powers for real world good. Incredible that there is a 95% reduction in CO2 with ammonium powered vessels……… investing in green technology is so important if we are going to meet our net zero targets

Shipbuilding. It is a unique industry both in terms of its importance to the state, and the specificities of its production processes. All its projects are long-term, engineering-focused and logistically complex. In addition, the industry's success depends entirely on government support. We can see this in South Korea, Japan, or Turkey, the latter of which is now a shipbuilding hegemon in the Black Sea. Unfortunately, Ukraine dropped out of the shipbuilding race a long time ago. The period of the free economic zone implementation briefly gave the industry a boost, but following this, everything went downhill. We can discuss these processes from the inside, because Smart Maritime Group was one of the largest shipbuilders in Ukraine, producing about a third of all ships in the country at its shipyards in Kherson and Mykolaiv. The reason I am speaking in the past tense, is because it is impossible to build ships during the war. But what happens afterwards? Without long-term financing and customer support, incentives to upgrade the fleet, and a reasonable tax and customs policy, Ukraine will continue to be at the bottom of the global rankings. It will continue to order civilian ships and warships from businesses in countries that understand not only the importance of the industry for the economy, but also for maintaining the country's sovereignty. I hope the vector will change. Because we are all changing now and reassessing our priorities. Read more about the far-reaching problems of the industry, its current state during the war, and the steps that will consolidate Ukraine's status as a powerful maritime power in this article from Forbes. https://lnkd.in/dQt4nYbM

Indian Government's Shipbuilding Cluster Proposal : The Indian government proposes establishing shipbuilding clusters on the east and west coasts to boost domestic capabilities and economic growth. Inspired by successful clusters in Asia, the plan involves: - Identifying locations with suitable waterfront and land areas. - Creating 3-4 international-standard shipyards per cluster through public-private partnerships. - Collaborating with foreign shipbuilders (e.g., South Korea, Japan) for expertise and market access. To be competitive globally, the proposal emphasizes: - Developing a robust regulatory framework to attract international clients. Seeking policy support like: - Low working capital loan interest rates. - Merchant Maritime Fund for long-term loans. - Tax breaks for new shipyards. - Relaxed custom duties and tax holidays. - The government might consider production, investment, and entry subsidies to lower shipbuilding costs, similar to other countries (China, South Korea, Norway). The current global shipbuilding market is dominated by China (58%), Japan (13%), and South Korea (24%). #shipbuilding #IndiaShipbuilding #Shipdesign #Maritime

New Russian shipyard planned for commissioning in 2031-2032 "The decision on the location of the new shipyard will be made based on further comparative analysis, taking into account all risks and limitations of the sites that affect the feasibility, timing, and cost of the project," Russia’s Deputy Minister of Industry and Trade Viktor Evtukhov said ST. PETERSBURG, June 10/ The planned commissioning period for the new shipyard project in Russia is 2031-2032, Russia’s Deputy Minister of Industry and Trade Viktor Evtukhov told TASS on the sidelines of the St. Petersburg International Economic Forum (SPIEF). "The decision on the location of the new shipyard will be made based on further comparative analysis, taking into account all risks and limitations of the sites that affect the feasibility, timing, and cost of the project. The estimated project implementation period is 2031-2032," he said. The United Shipbuilding Corporation (USC) is considering St. Petersburg, the Leningrad, Murmansk, and Arkhangelsk regions as potential sites for the construction of a new shipyard. A decision should be made in September 2024, Evtukhov added. The capacity of the new Russian large-tonnage shipyard may reach up to 12 ships per year, and it is planned to build transport ships there, he noted. Earlier, Head of VTB Andrey Kostin said that the bank wants to build two new shipyards in five years: one in the Far East and the second - in the North-West of Russia. The St. Petersburg International Economic Forum (SPIEF) was held on June 5-8. This year’s theme was "The Formation of New Areas of Growth as the Cornerstone of a Multipolar World." SPIEF was organized by the Roscongress Foundation. #business #finance #financialservices

Friday means Boat Day! 🛥 "Even Adam Smith, the father of modern capitalism, believed that shipbuilding was one of the very few industries that deserved national support and should not be left to market forces alone." I've been seeing increasing pressure for government subsidization and funding going towards the shipbuilding industry, with the most recent coming from the United Steelworkers union. Shocking to me that the US Shipbuilding Industry was ranked number one in global capacity in 1975, and has now fallen to producing less than 1% of the world's commercial vessels. I'm increasingly of the mind that a Shipbuilding Revitalization Fund is well overdue - what are your thoughts on the US government intervening to stimulate the shipbuilding industry? #maritimenews #shipbuilding #shipbuildingjobs https://lnkd.in/dNmCt9hK

TRADE ALERT- My latest CNBC article on the reality vs. the rhetoric of US Shipbuilding. Using data and analysis from experts to reveal the truth. S&P Global Market Intelligence Benjamin Nolan Clarkson Research Congressional Research Service Ron O'Rourke Darron Wadey Dynamar B.V. #shipbuilding #Maritimenews #businessnews #trade #containers #logisticsmanagement

China continues to expand its stranglehold on the global shipbuilding market, capturing nearly 70% of newbuilding orders in the first quarter of this year. Latest data from the China Association of National Shipbuilding Industry (Cansi) shows that Chinese shipyards secured 24.1m dwt of orders in January-March, up 59% year on year. This represents a global market share of 69.6%, compared to 62.9% during the same period a year ago and 66.6% for the whole of 2023. Unbeatable pricing, a relatively abundant labour force and narrowing technology gaps have enabled Chinese builders to gradually overtake major South Korean and Japanese competitors in the decades-long race https://lnkd.in/eYMUxXSn

🚢 Interesting parliamentary question to the European Commission regarding the imperative support for the European shipbuilding industry amidst growing concerns of unfair competition from China 🇨🇳. ➡️https://lnkd.in/ebXPsPty ⚠️ Although the question is rough on the European Green Deal, it raises real concerns about risks of competitive disadvantage for the European industry. 🌱⛴️The green transition is a great business opportunity for the shipbuilding industry with the development of a new generation of clean ships. However, the question is whether it will be a business case for European shipyards or a gift to their foreign (Asian) competitors. 🚨⚓️ ❓️Let's see what the European Commission will reply...