1 Big 3's golden section in three indicators

Korea's and world's big three shipbuilding companies evenly shared the No.1 position in three shipbuilding indicators; Daewoo Shipbuilding & Marine Engineering for new orders, Hyundai Heavy Industries for deliveries and Samsung Heavy Industries for orderbook. All of their strategies seemed to work with Hyundai aiming to become general heavy industries, Samsung focusing on high value-added businesses and Daewoo diversifying its businesses and conducting intensive new order activities.

2 Increasing gap between the poor and the rich

While large and middle-standing shipbuilders show a gradually improved profitability and recovery in new orders, small- and medium-sized and newly-established shipyards are likely to be withdrawn due to a deterioration in management results and incapability in RG (Refund Guarantee) securement.

3 Upturn in the newbuilding market

In 2010, bulkers and suezmax tankers led the newbuilding market for the first half while large boxships for the second half. Newbuilding prices have also increased by 5%-10%, getting out of the bottom. The offshore sector is expected to lead the newbuilding market next year.

4 Chinese shipbuilders take global No.1

Chinese shipbuilders beat Korean counterparts in all of the three shipbuilding indicators - deliveries, new orders and orderbook - for the first time in history.

Chinese yards are now focusing on turning the quantity-oriented business to quality-oriented. In particular, they will carry out an improvement of building efficiency and localization of ship products in a full scale.

5 Japanese yards to withdraw commercial ships

Some Japanese yards, including Mitsubishi Heavy Industries and Imabari Shipbuilding, have decided to cease building general commercial ships. This is because they try to turn their business structure to high value-added products due to a continuous high yen and their weakened market competitiveness compared to their Chinese and Korean rivals.

6 Boom of developing eco- and energy efficient ships

Shipbuilders have been concentrating on developing environmentally friendly and fuel efficient technology and vessel types. Technology improvement and related equipment markets are expected to boom in preparing for long-term environment regulations.

7 Ballast water treatment system market booms

30 countries, which occupy 35% of the whole fleet, have made laying ballast water treatment system (BWTS) compulsory. From this, many overheated BWT makers caused some troubles in their sales activities. Also shipowners face new issues regarding equipping their existing ships with BWTS.

8 Offshore wind turbine market emerges as blue ocean

Europe's large-scale offshore wind turbine projects are to be deployed in earnest, rising as a blue ocean market. Demand for new offshore wind turbine installation vessels has increased including newbuilding orders for nine ships with five optional ships this year. Further research and development on this field would be accelerated down the road.

9 Non-shipbuilding promoted for new growth

As a long-term recession in demand for newbuildings is forecast, diversification of businesses centering on the offshore segment is propelled. New business fields would expand, such as wind power and photovoltaic industries, with non-shipbuilding and integrated heavy industries becoming the mainstream.

10 Review on alternative fuels picks up speed

LNG is paid a high attention as a substitute for C heavy fuel oil with shipbuilders making concrete countermeasures. Each yard seems to focus on preparing countermeasures for enhanced environment regulations and long-term fuel cost reduction.

Source: Asiasis