SHIP DESIGN LECTURE NOTES

MOTIVATION: MARKET SURVEY

Demand: How many ships are ordered in a year
Supply: How many ships can be built in a year

Price
Supply
Demand

No of Ships Built
 Sea Transport
Demand
Bulk Cargo Small Cargo

General Cargo
Bulk Cargo •General Cargo
•Dry •Konteyner
•Liquid •Palet/Flat
•Special Cargo •liquid
•Reefer
•Wheeled Cargo

Bulk Cargo Transortation

one cargo for one ship cargo Transportation
various cargo for one ship

Bulk Cargo Fleet Liner Cargo

•Tanker Fleet
•Bulk Carrier •Multipurpose Ships
•OBO •Container
•Special Bulk Carrier •Ro-Ro

Charter Ships
Bulk Carriers Liner Ships

Merchant Ship Fleet

Supply
Demand
•Function of trade both on national and international scale
•Dependent on types of goods to carried
•Dependent on number of ships available
LIBOR (London Interbank Offered Rate)
 Supply
• Depend on capacity available both on national and international scale
•Dependent on
 Resources
• Finance
• Manpower
• Technical capability
SHIPYARD WORKERS IN OECD COUNTRIES
COUNTRY 1976 1994 1995 1996 1997 1998
A B A B A B A B A B A B
BELGIUM 7328 1652
DANMARK 13,400 7,500 7,600 6,500 6,200 6,080
FİNLAND 18,006 839 7,284 1,596 7,321 1,912 6,536 1,369
FRANCE 32,500 5,910 5,790 5,705 5,530 5,390
GERMANY 71,500 22,900 23,300 20,200 17,100 16,200
GREECE 7,452 15
İTALY 22,360 1,665 8,273 1,024 8,419 1,716 10,225 2,900 10,500 5,000 10,800 6,500
NETHERLAND 20,850 2,090 4,200 600 4,200 600 4,200 600 4,200 600 4,200 600
S
PORTUGAL 6,357 2,412 320 2,196 480 2,196 480
SPAIN 44,265 13,110 14,155 100 11,690 350 11,050 10,340 9,150
SWEDEN 23,600 700 540 90 465 70 465 70 320 50 320 50
UK 47,212 4,738 ? 4,653 ? 4,512 ? 8,472 ? 10,065 ?
EC TOTAL 314,830 18,419 79,564 3,730 75,634 5,168 71,589 5,419 62,752 5,650 62,205 7,150
NORWAY 18,500 4,000 900 5,000 1,600 5,000 1,300 5,100 1,700 5300 1500
POLOND 25,940 2,245 18,322 1,735 18,294 3,543
Total OECD- 333,330 18,419 83,564 4,630 80,634 6,768 102,259 8,964 86,174 9,085 85,799 12,193
Europe
USA
JAPAN 175,000 69,000 53,000 34,000 51,000 32,000 46,000 34,000 45,000 36,000 43,000 36,000
Total 508,330 87,419 136,564 38,630 131,634 38,768 148,529 42,964 131,174 45,085 128,799 48,193
KOREA 40,522 30,909 10,086 40,400 13,700 38,900 14,900 37,140 12,998 35,340 13,185
TURKEY 5,280 2,962 2,701 5,112 8,397 4,913 8,250
TOTAL 554,132 87,419 170,435 48,716 174,735 52,468 187,429 57,864 173,426 66,480 169,052 69,628
 1997
Other
10%
Europe Japan
16% 41%

S.Korea
33%

2007
China
15%
Other Japan
5% 35%

Europe
10%

S.Korea
35%
 Tanker Shipbuilding Prices
100 180
90
Million US Dollar

160
80 140
70 120
60 100
50
80
40
30 60
20 40
10 20
0 0
73

75

77

79

81

83

85

87

89

91

93

95

97

99
19

19

19

19

19

19

19

19

19

19

19

19

19

19
Year
30000 Dwt 68000 Dwt 80000 Dwt 140000 Dwt 280000 Dwt Index
 Bulk Carrier Shipbuilding Prices

70 180
60 160
140
Million US Dollar

50
120
40 100
30 80
60
20
40
10 20
0 0
73

75

77

79

81

83

85

87

89

91

93

95

97

99
19

19

19

19

19

19

19

19

19

19

19

19

19

19
Year

30000 Dwt 40000 Dwt 65000 Dwt 120000 Dwt 155000 dwt Index
Blance of Supply and Demand
• Demand for cargo transportation must be balanced by supply of ships in fleet
(and ships laid up)
• If Demand gets large comparative supply more ships must be built
•If supply gets large comparative to demand more ships must be laid up (or
demolished)
 High
Demand
Increase in
Charter
Prices
Demand-
in balance
Second Hand
Ship
Prices Increases
Ship scrap
increases

Increase in
Shipbuilding

New
Shipbuilding Shipbuilding
stop increase
excessive

Secondhand Excessive
ship prices drop Capacity
Decrease in
Charter
Prices
 Shipbuilding
demand and Shipbuilding
prices capacity
Finance
Production Manhour
cost
Ship Shipbuilding
Development Industry Efficiency
owners
Ship
Equipment
Exchange Flexibility Industry
rates
Govermental
Internal market factors- Stratregies
National shipowners

Reference: Drewry Shipping Consultants

The Marine Industry
THE WORLD FLEET TODAY
Lecture Notes: FROM NINOVA