The shipbuilding industry

The shipbuilding industry, at a global level, is going through a period of transition with lights and shadows, with 2015 to be a year of general decline in terms of orders of new units.

The cruise shipbuilding sector is however an exception, helped by the specialization of European and Italian companies, which can build large ships, like state-controlled Fincantieri and luxury cruise ship maker Mariotti. 

After the boom of global orders in 2007 (85.9 million gross tons) there was the big crisis of 2008 (orders falling to 43.7 million tons) and 2009 (15.9 million).

The 12 months of 2015 should record, according to sector analysts, orders for around 40 million of compensated gross tons, down 10-15% compared to 2014. In particular, demand of offshore rigs of all sizes has essentially vanished as a result of falling oil prices and the inevitable drop in spending on exploration & production by a majority of oil & gas industry operators. 

Fincantieri recorded first-half losses, hit by the offshore sector, while revenues increased, mostly driven by cruise ships. 

Cruise shipbuilding is booming, and this is positive for the Italian industry. 

Of 216 cruise ships built from 1990 until today, 70 were built by Fincantieri and production of these units remains controlled by three European companies: the Italian group (including Mariotti), Germany's Meyer Werft, which also controls Finland's shipyard of Turku, and France's Stx France (which has a South Korean shareholder). 

All the main maritime transport companies are investing in new units, with 16 ships ordered in 2014 compared with 9 in 2013, and 10 ships ordered in 2015.

The order book is at record highs, with deliveries expected by 2021, and 41 ships currently under construction (11 to be delivered in 2016, 9 in 2017, 8 in 2018, 7 in 2019, 5 in 2020 and 1 in 2021).

Of these, 16 were ordered from Fincantieri, for a total of 1.51 million gross tons. Meyer Werft also has 16 orders under construction. The German shipbuilder can rely however on bigger tonnage: 2.41 million. Stx France, instead, is working on 6 orders for 1.02 million tons. Japan's Mitsubishi has two ships under construction for 250,000 tons. Finally, Croatia's Brodosplit is building for Star Clippers a small unit of 8,770 tons.

If big shipbuilders can look at the cruise ship market with reasonable hope about its continued growth, the same cannot be said about the situation of smaller shipyards.

“Our partners are suffering from the difficult situation in the offshore sector and are looking for orders for more traditional boats,” said Cesario Mondelli, head of Rosetti Marino and president of Ancanap (Italian Private Shipyards Association).

Rosetti Marino, specialized in boats supporting the offshore sector, “defended” itself from the falling orders by building tug boats.

The hope is that €100 million of public funds (€5 million every year for 20 years) included in the 2014 budget by the government are finally released, Mondelli said.

Such measures are designed to support innovation in Italian shipbuilding. 

“It's been 20 years that the sector hasn't received help and today there are many projects from shipbuilders for liquefied petroleum gas (LPG-based) propulsion, for example for ferries but also other types of ships, which could benefit from the funds,” Mondelli said. 

The terms to participate in the funding program expired in November and 22 projects were presented, many of which from Ancanap shipyards and others by Fincantieri.

The problem, according to the director of the association, Giancarlo Casani, “is that the Transport ministry has not yet appointed the technical and scientific commission which will have to examine the project and start assigning the funds.”