A boom in new vessel contracts over the past two years has put Greek shipowners in first place for worldwide newbuildings. Are they now vulnerable to a falling market?
Summing up last years record total of Greek newbuilding orders an investment double the countrys annual budget he commented Emphasising the great importance of shipping to the nations economy, Greece in 2000 benefited from $7.8 billion in invisible earnings 38 per cent of its total export revenues. Hence the boom in new investment by Greek owners between 1999 and 2001: a boom which may now have run its course, but which still sees close to 250 vessels under construction or on order worldwide, representing a total of almost 23 million dwt.
Says Piraeus-based Nic Boussounis, DNVs maritime manager for the Eastern Mediterranean, Not only have Greek owners placed this wealth of newbuilding orders, but they are once again active in second-hand purchases. Their steady growth in the market one of the worlds most important shipowning groups is an indication of their experience and expertise as fleet owners and operators.
Greek newbuilding orders have traditionally focused on tankers and bulk carriers. It is clear from the current order book that this trend is being maintained, with orders for such ships in a wide range of sizes. They run from small products tankers to VLCCs, and from handysize to capesize bulkers. Other operators, of course, are involved in ordering and operating other types of vessel, such as car carriers, LPG tankers and container ships.
Towards the century
August saw delivery of the years 70th panamax bulker to a Greek owner, the 76,300dwt CIC Piraeus from Tsuneishi Shipbuilding (Japan) for Golden Union. By mid-October a further 15 had been delivered; years end will see the total close to 100.
Possibly this sector of the market, from the Greek viewpoint, is close to saturation. Says Boussounis, The year 2001 saw fewer orders placed for bulkers and container ships, but the Greek market was very active in tankers, especially panamax-sized vessels and products tankers up to around 45,000dwt.
One such order, four panamax products tankers for delivery to Athenian Sea Carriers in 200304, will be the first vessels to be built in the new 300,000dwt capacity dry dock at Chinas Jiangyang yard at Jiangsu one of several large dry docks under construction in China with an eye to a future upsurge in overseas orders. For the moment, though, most of those 250 ships still on order for the Greek market will come from yards in Japan and Korea.
Confidence in Korea &
Athenian Sea Carriers, for example, as well as the panamax tankers mentioned above, has six 159,000dwt tankers on order at Hyundai Heavy Industries in Korea, due for delivery between December 2001 and January 2003. Other contracts at HHI include three tankers and three bulk carriers for Arcadia Shipmanagement, three container ships for Costamare, and eight products tankers for Eletson Corp; and at Hyundai Mipo six 35/37,000dwt products tankers for Thenamaris.
At Daewoo, no fewer than seven large tankers two of 150,000dwt and five of 300,000dwt were contracted for delivery to Kristen Navigation (see box, page 28) between January 2001 and mid-2004; plus four VLCCs for Hellespont Steamship, a 300,000dwt tanker for Aeolos Management, and four 70,000dwt tankers for Stelmar.
& and in Japan
In Japan, significant contracts still in hand include a series of five bulk carriers for Angelikos, and two 156,000dwt tankers for Olympic, all at Namura Shipbuilding, Imara. Other Greek owners with new vessels under construction include Allied Maritime, Marmaras Navigation (again at Namura), and Dynacom Tankers.
Though in many cases standard shipyard designs are ordered, some are modified according to individual owners requirements. The larger, more experienced owners, with considerable expertise in-house, closely scrutinise specification and design, says DNVs Nic Boussounis. For all Greek owners we can assist with pre-contract specifications, design review and support services in general. We also offer an extensive range of training courses in Piraeus, a complete Condition Assessment Programme for ships in service, and the review and approval of proposed transfers into Class. DNVs market share of Greek-owned or operated vessels is close to 17 per cent.
Crew recruitment a priority
Maritime training is now a formal part of the Greek education system, with realistic incentives such as a reduction in the length of military service for maritime academy graduates. The perceived annual demand for officers is around two thousand; the current aim and capacity is 1100 new places per year.
Though the newbuilding order boom appears to be over, due in part to this years sharp fall in freight rates and concerns about the economy in general, Greek investment is still strong in certain areas such as medium-sized products tankers and the offshore industry.
Text:Keith@Evansdnv.freeserve.co.uk
Date: 2001-11-15