1. Executive summary
• Demand
• Market influences on demand
• Supply
• Costs and the competitive position
2. Demand
• Scheduled repairs
• Fleet age profile and prospective docking demand
• Other generators of shiprepair work
• Routine onboard maintenance
• Casualties and accidents
• Port State Control
• Sale dockings
• Lay-up - preparation and reactivation
• Preparation for demolition
• Conversion
• Retrofitting to meet mandatory measures
• Ballast water management systems
• Emissions-management equipment
• Electronic Chart Display and Information System (ECDIS)
• Other influences on the shiprepair market
• The development of seaborne trade
• The world fleet
• The shipping markets
3. Ship conversion market
• Market drivers
• The offshore sector
• Key prospects and developments
• Passenger and ferry sectors
• Others
4. Competitive and economic market influences
• The Repair & Maintenance budget
• Market-driven operational choices
• Older ships: scrap or repair?
• Diversion
• Shipyard costs and competitive implications
• Labour cost and other manpower issues
• Steel and steelwork costs
• Steel prices
• Steelwork costs
• Paints, coatings and anti-foulings
• Spares market
• Exchange rates
• Miscellaneous factors
• Regional competitiveness
5. Shiprepair facilities
• Dock types
• Regional distribution of shiprepair facilities
• China
• Singapore, Indonesia, Malaysia and the Philippines
• Singapore
• Indonesia
• Malaysia
• Philippines
• Middle East/Arabian Gulf
• United Arab Emirates
• Bahrain
• Saudi Arabia
• Kuwait
• Qatar
• Oman
• Iran
• Other Asia
• India
• Pakistan
• Bangladesh
• Sri Lanka
• Japan
• South Korea
• Taiwan
• Vietnam
• Thailand
• Black Sea and the Balkans
• Turkey
• Bulgaria
• Romania
• Ukraine
• Russian Black Sea
• Croatia
• Montenegro
• Mediterranean
• Greece
• Cyprus
• Italy
• Malta
• France (Mediterranean)
• North Africa
• Iberian peninsula
• Spain
• Portugal
• Gibraltar
• North West Europe
• France (Atlantic)
• UK
• Ireland
• Belgium
• Netherlands
• Germany
• Baltic region
• Poland
• The Baltic States and Russia
• Scandinavia
• Norway
• Sweden
• Finland
• Denmark
• Others
• Africa
• South Africa and Namibia
• West Africa
• East Africa
• North America and the Caribbean
• Canada
• Bahamas
• USA
• Caribbean
• South America - Atlantic coast
• Argentina
• Uruguay
• Brazil
• Venezuela
• South America - Pacific coast
• Australasia
• Australia
• New Zealand
• Papua New Guinea
Appendices
• Major fleet sectors and their newbuilding orderbooks
• Shiprepair country rankings
• Shiprepair competition overview - major locations
Tables
• Large ships - fleet and dock distribution
• Regional rankings based on facilities, competition, cost and other factors
• Potential special survey docking demand for major €˜market ship' fleets
• Ballast Water System Status, using active substances, as per MEPC meeting
in October 2010
• Evolution of seaborne container trade volumes
• Recent FPSO conversion activity
• Selected recent ship conversion contracts
• Representative R&M budget overviews by vessel type, 2010
• Potential special survey versus scrapping evaluation
• Indicative shiprepair labour cost groupings
• Comparison of selected characteristics of different dock systems
• Repair facilities of the COSCO Shipyard Group
• Repair facilities of the CIC Group
• Repair facilities of the CSSC Group
• Repair facilities of the CSIC Group
• Repair facilities of Yiu Lian Dockyards
• Other Chinese yards potentially active in the repair market
• Singapore repair facilities of SembCorp
• Singapore repair facilities of Keppel
• Indian shipyards involved with shiprepair
• SAJ member companies indicating repair operations
• Selected Italian shiprepair operations
• Main facilities of Navantia Shiprepairs
• Principal French Atlantic Coast Shiprepair operations
• Principal repair facilities in West Africa
• Main repair facilities within the USA
• Main Caribbean shiprepair facilities
• Principal Brazilian shipyards
• Major fleet sectors and their newbuilding orderbooks, start 2011
• Summary of overall shiprepair country rankings
Figures
• Annual change in market ship special survey timings
• Main drydock distribution by size
• Main drydock distribution by location
• Leading overall country rankings and cost factors
• Trend in Asian plate prices and Chinese steelwork costs
• Coatings industry raw material price increases, Jan 2011 v Jan 2009
• Changes in selected $ parities, Jan 2011 v Jan 2008
• Major fleet age profiles
• LNG carrier age profile
• Bulk carrier and tanker inactivity
• Evolution of seaborne dry bulk trade
• Seaborne oil trade developments
• Drewry container supply/demand index
• World fleet development, start of year
• New ship order backlog compared to existing fleet capacity
• Baltic Exchange dry bulk indices
• Modern Panamax and Capesize bulk carrier one year charter rates
• Baltic Exchange tanker indices
• Modern Suezmax and VLCC tanker one year charter rates
• Containership time charter rates
• Indicative container spot rate trend
• Recent crude oil price trends
• Chinese iron imports
• Overall R&M cost trend
• Recent trend in demolition prices
• Panamax bulk carrier - implied daily diversion opportunity cost
• VLCC - implied daily diversion opportunity cost
• Trend in Asian steel plate prices
• Estimated representative price ranges for steelwork renewal
• Trend in copper, zinc and aluminium prices - monthly averages
• Trend in steel plate and tin prices - monthly averages
• Strengthening of the Chinese yuan against the US dollar
• Exchange rates for key repairer currencies
• Relative exchange rate volatility since 2008
• Change in currency strength, January 2011 versus January 2008
• Principal shiprepair locations in China
• Principal shiprepair locations in Singapore and the Straits region
• Principal shiprepair locations in the Arabian Gulf region
• Shiprepair country rankings
The shiprepair market has shifted from the peak of 2008, when yards could pick and choose what work they took on, to one that is far more competitive. Many owners have gone into minimum-maintenance mode and will only commit to doing what is absolutely necessary.
Demand
Fleet age and usage play heavily on the demand for shiprepair services, with Drewry providing a forecast for potential special survey docking demand for major "˜market ship' fleets up to 2015. From this Drewry have identified the following issues;
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The rate of increase in core survey docking requirements will slow significantly over 2012-2014
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Recent fleet expansion will make a significant impact in 2015
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A potentially more difficult repair market and the need to win business from later-life surveys could push more work to facilities in China and Eastern Europe
Also provided in this section is information regarding regulations that require retrofitting of vessels and legislation that is designed to govern scrapping. Each of these will place demands on repair yards and must be considered when assessing the industry as a whole.
Finally, this section of the report covers the world fleet and the current dynamics of shipping markets, giving the reader an insight into future trends.
Ship Conversion
Ship conversions tend to be coveted contracts as it provides repair yards with longer term contracts compared to short term repair ones. The offshore market has dominated, with the focus on tankers being converted into FPSOs and FSUs. Singapore is leading the market in terms of securing contracts, but competition is still tough.
The oil industry remains strong and with a continuing need to add to the FPSO fleet, with the Shiprepair Report using Petrobras' programme for fleet development, totalling 10 projects from 2011-2014, as an example of the current market activity.
Competitive and economic market influences
This section of the Shiprepair report is the most comprehensive. Drewry explores at length a range of influences, starting with a budgetary overview by vessel type.
The budgetary overview illustrates to the reader the R&M budgets on a dollar-per-day basis, with it likely to constitute between 30-35% of the operating cost budget. Overall R&M cost trends are forecasted through to 2015, when recent newbuilds will head for their first special survey.
Readers of the report will find analyses of demolition markets with a "˜special survey verses scrapping' evaluation provided. At present, 2011 is expected to see a significant rise in scrapping but this will be affected by new conventions adopted by the IMO on the Safe and Environmentally Sound Recycling of Ships.
Ship yard costs are constantly changing and because of this Drewry has individually addressed aspects that include;
- Labour and manpower issues
- Steel and steelwork costs
- Painting, coatings and anti-fouling
- Spares market
- Exchange rates
- Yard overheads and administration
Shiprepair facilities
The supply side of the shiprepair equation is more complex than it first appears, so Drewry goes beyond simple explanations and looks in depth at the market place.
There are over 70 regions and countries individually covered in the Shiprepair report, with a detailed breakdown of individual yards facilities and capabilities including;
- Number and size of docks
- Type of dock (graving, floating, shiplift)
- Lifting capacities
This information is a who's who in the shiprepair business.
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