Page 59: of Maritime Reporter Magazine (June 2022)

Despite the record demand seen in some market segments,

Chinese shipyards are offering shipbuilding prices today which are up to 30 percent lower than 15 years ago – although average wages in China have risen by nearly 400% within the same period. ety that the use of Russian fossil fuels the same time, many maritime equip- ately so – is highly dependent on sup- should be terminated as soon as pos- ment suppliers report growing prob- plies from China. German Shipowners sible. We express our respect and ap- lems, especially in their business activi- have placed newbuilding orders worth 4 preciation for the unequivocal commit- ties in China, a situation seen in other billion euros. 55 percent of them went to ment and decisive actions we have seen, industries, as well. Problems include China and 44 percent to Korea, the G20 especially from the Federal Ministry of local-content requirements, discrimina- economy with the highest dependency

Economics under Minister Habeck. The tion, and interference by party of? cials. on Chinese pre-manufactured products. maritime industry plays a key role in While the shipping sector bene? ts sig- the search for alternative solutions. The A Dramatic Loss of Shipbuilding ni? cantly form state support measures, maritime sector connects the German Capabilities barely 1per cent of newbuilding invest- economy with the world, enabling us to German shipyards can only accept or- ments remain within the EU.

diversify our sourcing of energies, es- ders based on fully cost covering prices. Supported by European investments, sential raw materials, and semi-? nished They can neither offer government- China’s in? uence on global freight products, and to reduce unhealthy de- subsidies nor hope for the government transport is growing day by day pendencies. The maritime industry is a to make up for their ? nancial losses. China produces 96 percent of all “freedom industry”! Despite the record demand seen in some containers and 80 percent of all ship-

This is why the dramatic development market segments, Chinese shipyards to-shore cranes. China’s enormous in- seen across Europe’s maritime industry are offering shipbuilding prices today ? uence on the global freight transport should sound alarm: While the global which are up to 30 percent lower than 15 has become evident in the context of demand for new ships has doubled, or- years ago – although average wages in the current disruptions due to Covid- ders placed in Europe have declined by China have risen by nearly 400 percent induced port lockdowns. At the same another 20 percent, even compared to within the same period. Korean ship- time, China continues to expand its in- the extremely poor previous year. yards which have kept up with this price ? uence via favorable ? nancing for new-

In 2021, 85 percent of global orders competition recorded losses of $3.3 bil- building orders.

went to China and Korea. Both nations’ lion in 2021. The German federal government has governments have been subsidizing Without a fundamental change in ship- become aware of its painful dependence their maritime industries massively for building policies, Europe will lose the on Russian energy sources and is now years. Even Japan, while maintaining a capability to build seagoing merchant taking decisive action to address this is- relatively high domestic demand, barely ships on any signi? cant scale over the sue. VSM is calling on the federal gov- contributes 10 percent to the global or- coming 10 years. ernment to learn from its past mistakes der intake today. Europe’s market share Already today Europe’s shipping sec- and counteract with the same determina- has dropped to less than 4 percent. At tor – and the German one disproportion- tion the growing maritime dependence.

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MR #6 (50-59).indd 59 6/6/2022 9:28:27 AM