DECEMBER 21, 2017—In the continuation of a newbuilding partnership that extends some 10 years, Chesapeake Shipbuilding Corp., Salisbury, MD, announced that it had inked a new agreement with Vane Brothers, Baltimore, MD
NOVEMBER 24, 2017—Operators are investing in new vessels to keep up with the increasing popularity of river cruising in the U.S. and Europe. Cruise Lines International Association (CLIA)—which represents about 95 percent
MARCH 3, 2017 —Baltimore headquartered Vane Brothers, one of the nation’s premier marine transportation providers, has taken delivery of the 3,000 hp tug Fishing Creek. Designed by Frank Basile, P.E., of Entech
JULY 12, 2016 — Guilford, CT, based American Cruise Lines reports that Chesapeake Shipbuilding, Salisbury, MD, successfully launching the line’s newest ship, American Constellation last Saturday, nine weeks ahead of schedule. Immediately
JULY 12, 2016 — Guilford, CT, based American Cruise Lines reports that Chesapeake Shipbuilding, Salisbury, MD, successfully launching the line’s newest ship, American Constellation last Saturday, nine weeks ahead of schedule. Immediately
During the pre-SMM 2016 Press Conference on June 2, maritime economist Martin Stopford, Non-Executive President of Clarksons Research Services, said this year shipyards worldwide have experienced the lowest newbuilding orders since the 1980s. Stopford said orders of 14.2 million deadweight tons (dwt) were placed as of the end of April 2016. On an annualized basis that equates to 42 million dwt—the lowest annual rate since 1998 when orders were placed for 37 million dwt of ships. In stark contrast, the average number of ship orders since 2009 has been 94 million dwt.
Shipyards worldwide are expected to deliver about 103 million dwt of ships this year and 88.9 million dwt in 2017.
Stopford provided a perspective on the current weak shipping markets showing the average earnings of tankers, bulkers, containerships, and gas carriers have fallen to levels not see since 2003, according to the Clarksea Index. The average earnings per day in late May fell to $8,900 per day. In 2009, average earnings per day were at $22,000 per day.
There is clearly an overcapacity of ships. He pointed to declining trend in sea trade growth, which is projected at 2 percent this year.
SMART SHIPPING’s THE ANSWER
According to Stopford, one strategy to cope with these difficulties is Smart Shipping. The rapidly evolving information and communications technology (ICT) has enormous potential to improve fleet operations and transport productivity. It will play a crucial part in the survival strategy for shipping, said Stopford.
Stopford outlined the Smart Shipping Toolbox, which includes:
SHIPYARD CAPACITY SHRINKS
Shipyard capacity has been reduced by 20 percent with the closure of 581 “uneconomic” shipyards, but ordering levels for new ships are well below world capacity, says Stopford, so shipyards and marine equipment manufacturers are going to face a challenging year. In 2009, there were 992 active shipyards. Now, there are 423 active yards.
Based on the percentage of ship launches in the year by gross tonnage (GT), Chinese shipyards had 37 percent market share, Korea 35 percent, and Japan, 19 percent.
Korean shipbuilders have been particularly hit by the ordering slump. As we went to press, STX Offshore & Shipbuilding Co., filed for receivership. The shipbuilder could be liquidated or see its debt restructured, depending on what the court decides. STX Offshore & Shipbuilding has been under the control of creditors since 2013. The shipbuilder had losses in excess of 300 billion won last year, and 1.5 trillon won in 2014.
The top three shipbuilders in Korea, Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Samsung Heavy Industries, have all been hurt by the drop in oil prices as oil majors have cut exploration and production expenditures. All three had repositioned themselves towards building higher valued vessels geared towards energy production after the fiscal crisis of 2008 amid competition from much lower cost Chinese shipyard rivals.
There is expected to be consolidation among Korea’s smaller shipyards.
As of mid-March, the Top Five Shipbuilder by Orderbook Value were: HHI, with $24.42 billion, Daewoo, $19.9 billion, China State Shipbuilding, $15.07 billion, Samsung, $10.47 billion, and Japan’s Imabari, with $9.89 billion.
Cruise ship order book swells to $40 billion
Cruise travel continues to grow and expand at a record pace. This year, 24 million passengers are expected to take a cruise vacation this year, up from 23 million in 2015, according to the Cruise Lines International Association (CLIA).
Cruise ship owners are deploying more ships to Australia, China, and Asia to tap into the pent up demand for cruise travel and ordering new ships to accommodate the growth. As of last year, there were 471 cruise ships in service, with 27 new ocean, river and specialty ships scheduled to be deployed this year.
Just last month, Royal Caribbean Cruises Ltd. signed a Memorandum of Understanding (MOU) with French shipbuilder STX France to build a fifth Oasis Class ship for delivery in the spring of 2021 for its Royal Caribbean brand, and two additional Edge-class ships, scheduled for delivery in the fall of each of 2021 and 2022, for its Celebrity Cruises brand.
STX France is completing the design phase of the first prototype 2,900-passenger Edge Class ship and is set to start production this fall for a delivery in fall 2018.
If confirmed, the new construction contracts with STX France would swell the global order book to 59 oceangoing cruise ships, with a total of 176,755 passenger berths. The value of the order book is in excess of $40 billion.
STX France says that, when finalized, the three orders will secure the shipyard’s order book through 2023. Overall, STX would have 12 cruise ships on order, tied with Germany’s Meyer Werft for second most to Italy’s Fincantieri, with 22 cruise ships on order. Meyer Werft’s Finnish yard, Meyer Werft Turku, has six ships on order, with the remainder of the order book divvied up between Germany’s Lloyd Werft, Croatia’s Uljanik and Brodosplit yards, and Japan’s Mitsubishi Heavy Industries.
Not included in those figures is what would be the first cruise ship built in Russia in decades. Last month, Aleksey Rakhmanov, President of Russia’s United Shipbuilding Corporation (USC), says the company was to start construction this year of a cruise ship for an unspecified customer. No further details were available.
The market for river cruise ships is just as strong, with 40 vessels on order. In the U.S., American Cruise Line, Guilford, CT, expects to take delivery of the 170-passenger coastal cruise ship American Constellation in April 2017. The ship is currently under construction at its sister company, Chesapeake Shipbuilding, Salisbury, MD.
Nichols Brothers Boat Builders, Whidbey Island, WA, won a $94.8 million contract to build two 100-passenger, 238 ft coastal cruise ships for Lindblad Expeditions Holdings, Inc. Set for delivery in the second quarter of 2017 and 2018, respectively, the ships will operate between Baja, Costa Rica, and Panama during the winter months and Alaska, Oregon, Washington and Canada in the summer months.
MARCH 11, 2016 — American Cruise Lines reports that its newest cruise ship is now 11 weeks ahead of schedule with an anticipated delivery from Chesapeake Shipbuilding, Salisbury, MD, in the first
They will be the 15th, 16th and 17th tugboats built for Vane Brothers by Chesapeake Shipbuilding since 2008.
Construction on the first new tug has already begun in one of Chesapeake Shipbuilding’s hull fabrication buildings.
The design of the new tugboats will be nearly identical to previous tugboats built for Vane Brothers. Each will be equipped with twin Caterpillar 3512 main engines, producing a combined 3,000 horsepower, and will have a single drum hydraulic winch from JonRie of New Jersey.
The tugs will measure 94′ long with a 32′ beam, and a 13′ depth.
All Chesapeake Shipbuilding tugs are built in a controlled indoor environment prior to being moved and launched into Maryland’s Wicomico River.
Chesapeake Shipbuilding has recently made significant upgrades to its shipyard to increase its production capacity and efficiency, including acquiring additional land, building two new hull fabrication buildings and investing in additional automated equipment.
The yard is located on 14 acres of level land, with more than 2,400 ft of deepwater bulkhead, along the protected waters of the Wicomico River. It has two large outfitting basins, three side launch systems, plus a ground transfer system and various hull fabrication buildings and shops.
The Fort Schuyler is the eleventh Sassafras Class tugboat built for Vane Brothers by Chesapeake Shipbuilding, Salisbury, MD. Its sister tug, the Kings Point, was delivered in April this year.
“Working alongside another Maryland-‐based company to deliver safer and more productive working vessels such as the Fort Schuyler has been a great experience for Vane,” says Vane Brothers President C. Duff Hughes. “Chesapeake Shipbuilding is helping us to further our mission of providing the highest quality service to our customers.”
Measuring 94 feet long and 32 feet wide with a hull depth of 13 feet, the Fort Schuyler is similar in most respects to the previous ten tugs built for Vane by the shipyard.
The vessel is equipped with twin Caterpillar 3512 Tier 3 main engines producing a combined 3,000 horsepower, and operates with a single-drum hydraulic towing winch.
“Soft-core” panels and heavy, fire-rated doors are used throughout, offering the crew a safer and quieter living environment.
In a first for Vane Brothers, the Fort Schuyler’s state-‐of-‐the-‐art wheelhouse features multi-‐functional Simrad marine electronics that utilize intuitive interfaces for heightened performance.
The Fort Schuyler, like the Kings Point, has joined Vane Brothers’ fleet based in New York.The two vessels are named for the campuses of SUNY Maritime College in Fort Schuyler, NY, and the U.S. Merchant Marine Academy in Kings Point,NY.
August 7, 2015—American Cruise Lines, Guilford, CT, reports it has launched its newest paddlewheeler America three weeks ahead at Chesapeake Shipbuilding, Salisbury, MD. Following its launch into the Salisbury River, tugboats skillfully