SHIP DESIGN LECTURE
Market: Supply and Demand
Samsung shipyard
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
•Konteyner
•Palet/Flat
•liquid
•Reefer
•Wheeled Cargo
•Dry
•Liquid
•Special Cargo
Bulk Cargo Transortation
one cargo for one ship cargo
Transportation
various cargo for one ship
Liner Cargo
Fleet
Bulk Cargo Fleet
•Tanker
•Bulk Carrier
•OBO
•Special Bulk Carrier
•Multipurpose Ships
•Container
•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
Supply
• Depend on capacity available both on national and
international scale
•Dependent on
Resources
• Finance
• Manpower
• Technical capability
SHIPYARD WORKERS IN OECD COUNTRIES
COUNTRY
BELGIUM
DANMARK
FİNLAND
FRANCE
GERMANY
GREECE
İTALY
NETHERLAND
S
PORTUGAL
SPAIN
SWEDEN
UK
EC TOTAL
NORWAY
POLOND
OECDTotal
Europe
USA
JAPAN
Total
KOREA
TURKEY
TOTAL
1994
B
A
1652
7,500
1,596
7,284
5,910
22,900
7,600
7,321
5,790
23,300
8,273
4,200
1,024
600
8,419
4,200
1,716
600
10,225
4,200
2,900
600
6,357
44,265
23,600
47,212
314,830
18,500
2,412
14,155
540
4,738
79,564
4,000
320
100
90
?
3,730
900
2,196
11,690
465
4,653
75,634
5,000
480
350
70
?
5,168
1,600
480
83,564
4,630
80,634
6,768
2,196
11,050
465
4,512
71,589
5,000
25,940
102,259
70
?
5,419
1,300
2,245
8,964
13,110
700
18,419
A
B
1,912
A
6,500
6,536
5,705
20,200
1998
1997
1996
1995
1976
B
A
7328
13,400
839
18,006
32,500
71,500
15
7,452
1,665
22,360
2,090
20,850
B
A
B
A
6,200
6,080
5,530
17,100
5,390
16,200
B
1,369
6,500
600
10,500
4,200
5,000
600
10,800
4,200
10,340
320
8,472
62,752
5,100
18,322
86,174
50
?
5,650
1,700
1,735
9,085
9,150
320
10,065
62,205
5300
18,294
85,799
7,150
1500
3,543
12,193
50
?
333,330
18,419
175,000
69,000
53,000
34,000
51,000
32,000
46,000
34,000
45,000
36,000
43,000
36,000
508,330
87,419
136,564
38,630
131,634
38,768
148,529
42,964
131,174
45,085
128,799
48,193
10,086
40,400
2,701
174,735
13,700
38,900
14,900
87,419
30,909
2,962
170,435
52,468
187,429
57,864
37,140
5,112
173,426
12,998
8,397
66,480
35,340
4,913
169,052
13,185
8,250
69,628
40,522
5,280
554,132
48,716
Other
10%
Europe
16%
1997
Japan
41%
S.Korea
33%
2007
China
15%
Other
5%
Japan
35%
Europe
10%
S.Korea
35%
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
19
79
19
77
19
75
180
160
140
120
100
80
60
40
20
0
19
73
100
90
80
70
60
50
40
30
20
10
0
19
Million US Dollar
Tanker Shipbuilding Prices
Year
30000 Dwt
68000 Dwt
80000 Dwt
140000 Dwt
280000 Dwt
Index
70
180
60
160
140
50
120
40
100
30
80
60
20
40
19
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
0
19
79
0
19
77
20
19
75
10
19
73
Million US Dollar
Bulk Carrier Shipbuilding Prices
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
Demandin balance
Second Hand
Ship
Prices Increases
Ship scrap
increases
Increase in
Shipbuilding
New
Shipbuilding
stop
Shipbuilding
increase
excessive
Secondhand
ship prices drop
Decrease in
Charter
Prices
Excessive
Capacity
Shipbuilding
demand and
prices
Finance
Production
Ship
Development
owners
Exchange
rates
Shipbuilding
capacity
Shipbuilding
Industry
Flexibility
Manhour
cost
Efficiency
Ship
Equipment
Industry
Govermental
Internal market factors- Stratregies
National shipowners
Reference: Drewry Shipping Consultants