Page 2: of Maritime Reporter Magazine (June 1999)

The Yearbook By The Numbers 221 • Tanker Market

With ordersT^HHHHH oil prices rising will order be restored to the market .'

Market Reports 23 Dry Bulk Market

With scrapping at a 10-year high and economic factors looking up, what does the remainder of '99 have in store? 25

Shipbuildii

Mergers and consolidations continue to re-shape the world market. 27 Offshore

Following the immutable laws which govern it, prices will rise and business will boom again. But whenjand where? 34 Inland

The resolution of several key legislation matters will effectively shape the shal- low draft market for years to come. 54 10 Significant Marine Innovations

Profiled are a selection of new and proven maritime technological accomplishments, including Bouygues' new Field Development ship; a new naval marine power initia- tive; and a highly cost-effective and flexible RoPax design. 10 31 48 78 92 98 117 108 132

Investment in Design LR has embarked on a reorganization and investment plan.

Marine Finance OSE maintains steady course following rough 1998.

Chemical Tankers The slump will continue.

Company Profile MacGregor goes with flow.

U.K. Maritime Report U.K. captures market share through acquisitions.

Communication Report Y2K ... Are You

Ready?

Shipyard Orders

The World Fleet

Ship Repair & Conversion

Market Indices 87 Luther's Way i' L

M rSlSXmBmBfk. . \ tarting with the Rhodoyster in 1949, uther Blount has served the maritime market with a unique sense of design and entreprenuership that has left the man — some 50 years ana 300 vessels later — a proven success and still driven. — by Regina P. Ciardiello

ABOUT THE COVER:

This year's June Yearbook edition cover photograph was provided by

Walter Garschagen of Walter Garschagen Photography.

Mr. Garschagen specializes in maritime and industrial photography, and travels worldwide photographing vessels and operations for the mar- itime industry. For information on utilizing Mr. Garschagen's exper- tise, contact him at:

Walter Garschagen Photography 22 Division St., Cold Spring, N.Y. 10516 tel: (800) 333-8385

Subscriptions: One full year (12 issues) $18.00 in U.S.; outside of U.S. $96.00 including postage and handling. For subscription information, contact: Dale Barnett, fax: (212) 254-6271; e-mail: [email protected]

A host of unnatural market forces, including subsidies and the proliferation of a myriad of political agendas, have con- spired to keep ship prices artificially low, according to ship- builders. These claims seem to have merit, given a survey of select shipbuilders and some number crunching by the MR/EN staff. For example, the price of VLCC and Suezmax sized tankers has hardly advanced as one might expect, particularly when the numbers are adjusted to account for inflation. To make the comparisons more interesting, we have noted the price advances of a host of consumer products, from a loaf of bread to a Ferrari. Please note, however, that different time- lines are utilized in several cases, due to information available.

The Results

Price comparison of ships and goods, using inflation adjusted pricing.

Song of Norway (1969)v. Voyager of the Seas(1999>: Increase: 734% 1974 Ferrari v. 1999 Ferrari: Increase 420% 1974 Corvette \. 1999 Corvette: Increase 102%

VLCC Tanker 1986 v. VI.CC Tanker 1998: Increase 22%

Gallon of Gas (1974 v. 1999)

Pound of White Bread (Il)74 \. 1999): Decrease 21 %

Suezmax Tanker 1986 Suezmax Tanker 1998: Decrease 1.2% 105 cp> or N Prices for VLCC and Suezmax are for period between 1986 and 1998, and are in $ in millions. Red line rep- resents inflation-adjusted $; Black line represents actual $ paid.

Cruise MupH Ferrari • Corvette ^m Gasoline

In 1969, Royal

Caribbean payed $13.5 million for

Song of Norway, v. $500 million for

Voyager of the

Seas, which is cur- rently under con- struction in

Finland. 200,000 — - 150,000 100,000 - 50,000--=- - 1974 price was $14,000 ($46,200 in today's dollars), and was an 8- cylinder engine; versus $240,000 for a 12-cylinder model in 1999. (Source: Original

Ferrari literature) < >usoIin 1.6 ] 1.2 4 0.8 4 0.4 • o 4 II -

Bread 1 - 0.5 • 0

L. —i 1974 price was $6,000 ($19,800 in today's dol- lars); versus $40,000 in 1999.

Increase; 102%

The prices of both gasoline and bread, in infla- tion-adjusted $, has actually dropped. Gas: from $1.75 in 1974 to $1.35 in 1999; Bread from $1.12 to $.88.

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