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z
Paper
On
Built fleet statistics, trend in fleet development,
demands for world fleets and the future of the fleet
and shipbuilding industry
MMK 2513
By: Oladokun Sulaiman
Supervised by: Dr. Omar
Faculty of mechanical engineering
Marine technology department
Universiti Teknologi Malaysia
Skudai, Johor, Malaysia
January 2006
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Abstract
Human civilization in building things always taken similar path across all aspect of life,industries of yesterday have seen concentration in vertical way of building industries,
today is all horizontal building methods some that include merging and strongcollaboration. The large-scale nature of shipbuilding has created a pathway for
associative manufacturing. Ships as well as other industrial maritime structures andrelated components are an important industry that requires the best and latest
scientific/engineering resources in a multitude of different disciplines.These reports will collect, discuss and analyses of various and historical and statistical
datas of shipbuilding for the last decade and deduce trend in shipbuilding, demand andfuture direction the industry.
The report will touch the serious difficulties the shipbuilding sector is facing and
providing information on trend in commercial practices.
The paper will also discuss:
The longer term supply and demand analysis for merchant ships; General remarks on the nature of shipbuilding contracts and on the underlying
Study work; The analysis of the financial sector in South Korea;
Details of certain investigated shipyards; The description of the applied methodology;
Introduction
Shipping is not a primary industry in the sense of agriculture or mining, nor a secondary
industry in the sense of steel or chemical production. It is a tertiary or service industry
that responds to the needs of the shipping public. As such of that, shipping represents the
investment of billions of dollars individual, corporate, commercial and government itself.
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From that, the major function of the shipping industry is to close the physical gap
between trading nations by allowing the exchange of extra commodities. This activity is
performed worldwide and links all parts of the globe in a network of routes, some of
which are highly developed and heavily trafficked. Others used occasionally at certain
times of the years. So, water borne transport is the cheapest means of moving large
quantities of any commodity over long distance although it is in the main far slower than
other forms of transport.
Owners do more than respond to the signals of the market. They continually assess the
future needs of shippers and charterers investing their resources in terms of manpower
and capital, in new ship design, technological improvement and additional ship capacity,
realizing profits if they a re right and losses if they are wrong.
Lowering the cost of transportation since World War II has encouraged the specialization
of industrial output by shifts in the comparative price advantage of domestic and foreign
produced goods and has opened remote sources of raw material. World economies have
never been as integrated as they are now. Trade is the most powerful binding force in a
world filled with incompatible political systems.
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Trends in shipbuilding
According to Lloyds Register, the world orderbook for new ships, as measured in gross
tons, decreased after June 1998. On June 30, 1999, the world orderbook for merchantvessels 100 gross tons (gt) and over consisted of 2,479 vessels totaling 53.8 million gt.
This represents a 7 percent decrease from the 2,668 Vessels on order at the end of June1998 and a 3 percent decrease in gross tonnage from 55.6 million gt in June 1998. The
average size of merchant ships on order increased 4 percent from 20,829 gt at the end ofJune 1998 to 21,718 gt at the end of June 1999. South Korea jumped ahead of Japan to
regain the dominant position in the world merchant shipbuilding market. South Koreaaccounted for 35 percent of the gross tonnage of merchant ships on order, followed by
Japan with 32 percent and the Peoples Republic of China with 5 percent of theinternational commercial shipbuilding orderbook (see Figure 22-1). At the end of June
1999, the United States ranked twelfth among shipbuilding
The world shipbuilding market continues to face serious difficulties, due to an imbalanceof supply and demand. Past expansion of shipyards, mainly in Korea, but nowincreasingly also in China 3, has led to price depression. Year 2000 have been a recovery
point due to high level of ordering and increase in price while year 2001 has led to a newreduction in prices.The year 2001 has been very problematic for the maritime industries
world-wide: The Recession in the US and the terrorist attacks of 11 September hasdecreased the demand for sea trade and cruises, respectively. The decline in ordering
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affected the sectors of Containerships and cruiseships most, leading to a drop in overallmarket share for Korea and the EU, which are particularly strong in these segments.
The segment Liquified Natural Gas carriers (LNG) saw an increase in absolute order
volume, however, this is still a niche market. Korean yards took most of the orders for
LNG carriers. They hold 65 % of the relevant world orderbook, and 79 % of the neworders placed in 2001 went to Korean yards, despite the fact that Korea is a relativenewcomer in the field and the building yards do not hold patents on the key technologies.
Market analysis suggests that Korean yards made inroads in this area due to very lowoffer prices. Their ability to supply a large number of vessels at an early delivery date
may have been important in getting a large amount of orders also.
company in the field and their data is also used by international organizations such as theOECD.
Challenges in technological developments in the shipping and shipbuilding industriesover the last few years are summarized here by adding the latest information to what was
reported.
1. Energy Saving Technology for Ships
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In 1981, successful attempts to develop ships mainly very large ore/ coal carrier,
which would consume 40 to 60 percent less fuel than conventional ships of
comparable size were announced in quick succession and construction of such
ships was started. At the same time, these techniques serve as stepping stones for
further technological development in this direction.
2. Study on Technological Strategy
Expert from universities, the Ministry of Transport and the shipping , shipbuilding
and ship machinery industries gathered and discussed a technological strategy for
the coming years, based on the environment of the shipbuilding industry and the
expected future image of the nation. The conclusion s they reached were:
Social requirements and constraints to be taken into consideration are
boiled down to building up a socioeconomic system harmonized with the
environment, realization of secure and hazard-free life of high quality,
realization of an advanced IT-oriented society and assurance of steady
supply of energy, resource and food.
Focus on energy conservation and human labor saving, themes
corresponding to the above-cited general objective include conservation ofthe global and marine environment, pursuit of greater safety and
reliability, application of advanced information technology and
enhancement of productivity and reliability and sophistication of
shipbuilding technology and creation of new demand to be met by
shipbuilders.
3. Conservation of the Global and Marine Environment
Among the themes concerning the conservation of the global environment taken
up by the United Nation Environmental Program (UNEP), those having direct
relevance to the shipping and shipbuilding industries are the prevention of the
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marine pollution, the prevention of air pollution and the prevention of global
warming.
4. Ship Safety and Reliability
From the second half of the 1980s, bulk carriers were wrecked consecutively,
tolling many human lives and large amounts of resources. Safety problems of
bulkers have been discussed mainly at the IMO and the International Association
of Classification Societies (ICAS) and legislation for greater safety is in the
process of development. Therefore, they create some solution for them to follow
it, the solution covered;
Enhanced Hull Inspection and Maintenance
Fatigue and Corrosion of Hulls
Monitoring of Hull Strength
Modernization of Ship and Establishment of Management Systems
5. Application of Advanced Information Technology and Enhancement of
Productivity and Reliability
A computer integrated manufacturing system (CIMS) for shipbuilding has been
studied as a joint project of the academic community and private industry since
year 1987. Realization of the system is an urgent necessity in order to transform
the traditional labor intensive shipbuilding sector into a modern industry and
eventually solve the immediate problem of labor shortage, especially of skilled
worker. Because the reduced physical capacity of shipyards and the double hull
requirement for tanker will inevitably reduce the numbers of vessels that can be
built annually further improvement in productivity are required. From this CIMS,
it introduces;
Design stage
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Production planning and production management
Mechanization and automation
6. Advancement of Shipbuilding Technology and Creation of New Demand
Studies are under way focusing on the development of ultra-high speed cargo
ships, and on infrastructure improvements including faster and more efficient
cargo handling to match the speed of fast marine transport, all with an eye to a
modal shift in the key aspect of logistic.
The volume of cargo traffic increase annually and basic physical distribution
requirements for ever faster, cheaper and safer transport remain. Overland
transport in particular, is beset by problems of congestion, labor shortage an air
pollution from exhaust gas, giving rise to demands by society for a modal shift to
marine transport.
Research efforts are also made for practical application of gigantic floating
structures intended for greater utilization of oceanic space. It is hoped that
shipbuilding technology be further advanced so as to create new demand to bemet by shipbuilders.
Summary of market share all ships type
According ships datas collected from clackson research report, Japan, china (includingHong Kong ) , the republic of Korea , Denmark and Sweden are outstanding among the
nations with maritime services for cross trades.
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Other major trading nations are major importers or users of shipping services whilemaintaining a relevant ownership position and to lesser extent a national flags for
example the united stares come into this group. According to UNCTAD report the UnitedStates account for 13% of world trade while owned 5.9 % of world tonnage with only
about 1/4th of such tonnage flying the national flag. Similarly France account for .5% of
world trade and .0 % of tonnage ownership with flag having a share of of thispercentage.
Korean yards continue to price ships below cost while others are trying to improve theirbottom line. Most major Korean yards managed to show a profit for 2001, due to high
sales volume at expense of price.
The source mostly referred to in this report is H. Clarkson Ltd. 11 and its varioussubsidiaries (in particular Clarkson Research). While Clarkson is a well-recognized
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Demands for shipbuilding
Research and development Forecast under analysis of cargo volume and correlation with
fleet ownership generated has allows have also been a useful tool for various decision
making process to meet market and demands call in maritime industry a swell asincreased productivity and cost reduction in the construction of ships. So far, because of
the complexity of the maritime industry- maritime structures and maritime transportservices are largely interrelated, therefore, demands to meet productivities, efficiency of
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the construction of ships, Technology and Improvement of competitiveness depends onthe following components
Organization
Human factor
In particular, in order to achieve substantial cost reduction, productivity gains, production process simulation under technological and organizational, this along side with other
factors of labor and incorporation of new ICT tools for interconnectivity betweendifferent systems will be taking into account and incorporated as necessarily.
In addition to this the following factors has also influence the market of sea transport:
World Economy: the world economy with its output and trade is the mostimportant single factor to generate demand for shipping and any crisis in the
world economy reflects in the demand for shipping. Ups and downs of shipping
demand are also proportionate to world trade. The world economy that may bringabout change in the demand for sea transport through:
The Business Cycle: The business cycle lays the foundation for freight cycles.Fluctuation in the rate of economic growth work through in to the sea borne trade,creating a cycle pattern of demand for ships. For example, two major recessions
in shipping business in 1975 and 1981-1983, which co-incited with the recessionof the world economy. These economic cycles arise from a combination of
external and internal factors. The external factors include events such as wars orsudden changes in commodity prices such as crude oil, which cause a sudden
change in demand. Internal factors refer to the dynamic structure of the world
economy itself, which it is argued, leads naturally to a cyclical rather than lineargrowth path. Five of the most common business cycles are-
Concurrently, this make the designing and building of highly complex maritime systems, be it ships, floating factories or fixed structures, requires the best possible
multidisciplinary approach that focus on
Simplicity (in lay-out and operation)
Robustness and reliability Ease of maintenance
Low manning requirements
Inline with contemporary issue of sustainable safe and environmentally friendly shipoperation, using
Design Tools.
Design Methods Production Processes
Production Technologies
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Commodities that have share of commodity for sea trade are raw material of agriculturalindustry, Metal Industry, Forest Product, Other Industrial Material, Other Manufactures.
The most important technical development was the unitization of the liner shipping
business. The shipping industry has been so successful at exploiting this technical
development that the cost of sea transport has hardly increased- Coal and Oil cost littlemore to transport.
It is generally considered that maritime capabilities, specifically of the ownership ofsubstantial tonnage are essential for a county trade support and promotion. This report
will highlight datas of major trading countries, the relationships and impact betweencargo and tonnage and the flag of registry in the mid 1990s than in 1940s.
Market trend
According to UNCTAD maritime review Japan, Koreas china has made more than
dramatic change that revolutionarys shipbuilding. It has observed that shipping buildingand its associated industry is quite conservative, and they are more subjects to
government influence and policies. This influence has provided fluctuation trends in theindustry and of course the demand and supply for cargo are determinant for demand for
new ships.
A summary of the balance of tonnage supply and demand for selected years appears in
table - The total surplus tonnage in 2004 was about half that of the previous
year 6.2 million dwt. This was largely attributable to the high level of vessel scrappingover the last few years and to increased employment of ships.
Supply
Tonnage supply in the oil tanker sector increased in 2004 by 12.3 million dwt to 298.3million dwt as newbuildings delivered outweighed tonnage scrapped, laid up or lost (see
table and. figure). This, combined within increased shipments and extended haulage,
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brought down overcapacity to 3.4 million dwt or 1.1 per cent of the total world tanker.eet. In 2004, the total dry bulk. Fleet supply increased by 27.6 million dwt to 325.1
million dwt. Over tonnage for this type of vessel reached 2.1 million dwt, equivalent to0.6 per cent of the dry bulk .fleet. For the conventional general cargo. Fleet, overcapacity
stood at the same level as in the previous year, with supply exceeding demand by only
0.7 million dwt or 1.6 per cent of the world .fleet of this sector. The surplus tonnage ofgeneral cargo vessels has been under 1 million dwt for the last four years.
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Policy change
Recent years have seen many countries coming up with revitalizing and their shipping
building industry, in Nigeria cabotages law and ship financing scheme is recentlyestablished to encourage shipbuilding and ship acquisition. The US also introduced the
National Shipbuilding and Conversion Act of 1993 and the expanded Title XI FederalShip Financing Guarantee Program. .the same is introduced in other part
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Demand
The correlation between cargo volume generated by different country groups and theirfleet ownership is summarized in table 29. Developed market-economy countries
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generated 48.9 per cent of world seaborne trade in 2004, compared with 53.7 per cent in1980. Over the same period, the tonnage share of the fleet of developed market-economy
countries fell, from about 51 per cent in 1980 to about 27 per cent in 2004.However, in addition to tonnage under national flags, there is also the tonnage of vessels
owned by nationals of particular countries but registered under foreign flags, and the two
together bring the share of developed market-economy countries to 65 per cent. The shareof developing countries in world cargo turnover has remained at about 40 per cent.
Their tonnage owned and registered under national flags increased from 10 per cent ofthe world fleet in 1980 to 22.6 per cent at the beginning of 2005, Tonnage beneficially
owned by developing countries has expanded to nearly one third of the total beneficiallyregistered tonnage, bringing the total tonnage owned by developing countries to about 36
per cent of the world .fleet. The share of world cargo turnover generated by the countriesof Central and Eastern Europe remained at about 3 per cent in 2004, unchanged from the
levels of previous years but significantly less than the 4.7 per cent level of 1980.
These countries fleet position also declined from 5.5 per cent to less than 2 per cent in2004. The socialist countries in Asia increased their share in world trade to 8.1 per cent in
2004, while they improved their share in world tonnage from 1.6 per cent in 1980 to 3.7percent in 2004. In addition, these countries have a small share of their fleet registered in
the open registries.
Information on the fleet ownership of the major trading nations appears in table 30. Themajor trading nations are also major owners of tonnage, which reflects the fact that in
trade-supporting policies maritime transport can be exploited as a complement to trade.Maritime capabilities, specifically ownership of substantial tonnage, are generally
considered essential for a countrys trade support and promotion. The table alsohighlights the similarities and differences among the shipping services of the leading
trading nations. Major trading countries such as Japan, China (including Hong Kong), theRepublic of Korea, Denmark and Sweden are outstanding among the nations with
maritime services for cross trades. Other major trading
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The information provided by Clarkson Research confirms the general downward
trend in ship prices. This applies to all standard ship types and reflects the generallynegative sentiment in the market, despite rising costs stemming from inflation, wage
increases and higher prices for raw materials priced in USD in all major shipbuilding
regions.
Source - clackson research
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In accordance with market developments, Chinese shipbuilders have expressed their
intention to aim for a large scale expansion of facilities, quoting South Korea as anexample to follow. This is likely to lead to further price decline, unless China herself
creates significant additional demand for ships. China being in WTO will equally creat
effect in the market.
The index clearly shows the massive drop in prices following the Asian crisis of1997/98 and the subsequent efforts to increase prices along the ordering boom in
2000. The (not very pronounced) trend towards better prices stopped in late 2000 andfor the year 2001 the trend was reversed as had to be expected with the number of
incoming orders falling. It is noteworthy that 2001 price levels did not keep pace e.g.with inflation.
With very limited ordering expected for 2002, price recovery will be difficult toAchieve, although yards may be inclined to look for orders in those segments that
have been less affected by price erosion. Past experience has, however, shown thatthis behaviour does not improve the financial results of yards, but rather leads to
additional price erosion in the targeted sectors, as long as the market is characterized
by over-supply.
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New building
Yards, such as Hyundai (HHI), Hanjin (HHIC) and Samsung (SHI), did not benefitedfrom large scale debt restructuring and which operate comparatively old facilities show
(slightly) higher production costs under the debt-based methodology, while yards, such as
Daewoo (DSME) and Daedong, did benefited from debt reductions and moratoria butoperate comparatively new facilities show (slightly) higher production costs when basing the investigations on the depreciation approach. The two approaches give very
similar results for the other two major Korean yards, Hyundai Mipo and Samho. Ofcourse, results are also influenced by the financing terms of the individual projects
investigated.
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New ship buildersSource- European union
Prediction for future shipbuilding
If we go through the trend of the shipping and shipbuilding above, we can create and
project a new development in next few years construction. Here, what I am thinking that
influence to the shipping and shipbuilding industries.
1. Justification for Combined Carriers
In order to discuss the need flexible ships on certain of the worlds trade routes,
the following section looks at the justification put forward by the shipping
industry for the design and operation of combined ore, bulk, oil carrier or ore, oil
carrier. These ships are designed to carry either oil or dry bulk on separate
voyages at different times and are potentially more productive than pure tanker or
bulk carrier.
In making the decision to invest in combined carrier tonnage as opposed to a pure
oil carrier or dry bulk carrier, the ship-owner is presented with two possible
operating scenarios. He can either combine voyages over a period by carrying dry
bulk and oil in a sequence that keeps ballast to minimum or he can switch his ship
between the dry bulk and the oil market sector. The independent ship-owner seeks
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to minimize his earnings by operating ships; therefore he must adapt management
performance to combine flexibility with greater earning power.
2. Combined Voyages
The operation of combined voyages seeks to mix short ballast passages with
longer loaded ones. It takes a different management style and effort to negotiate a
series of contracts that will keep the ship employed to that normally found in bulk
shipping company. The use a contract where the ship is not named in the
document, but a promise is given to deliver the fixed amounts of cargo in given
time periods makes it possible to plan the schedules of a fleet of this type of ships.
The problem may be encountered where the cargo owner may offer a lower
freight rate than that currently found in the spot market in exchanged for this type
of commitment.
3. Spot Market Operation
The basic assumption underlying this philosophy is that the shipping market
follows a pattern, which enables the time, when it is advantageous to transfer the
combined carrier from oil trading to dry bulk trading to be calculated. This means
that when tanker rates are high, the ship is traded in the oil market as a tanker, but
when this rate falls there comes a time when the dry bulk rate will be higher it is
the profitable to transfer to dry bulk trading.
4. Event Affecting Combined Carrier Utilization
5. Energy
Almost all commercial merchant ships are powered by oil fed plant. However, the
oil crisis of the last few years has highlighted the need to research the likely
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power plant of the future. Amongst the many options, three alternatives to oil
seem to have gained the most attention.
Steam power
Wind power
Nuclear power
New project investigations
Since the last shipbuilding report six more orders (all placed in South Korea) wereinvestigated in detail, in order to establish the actual building costs. The investigated
orders are:
VLCC, 48 120 cgt, to be built at Samho Heavy Industries; LNG carrier (series of 5), 71 850 cgt, to be built at Daewoo Shipbuilding andMarine Engineering Co. Ltd. (DSME);
LNG carrier, 69 675 cgt, to be built at Samsung Heavy Industries (SHI); LNG carrier (series of 2), 88 500 cgt, to be built at Hyundai Heavy Industries
(HHI); Suezmax crude oil tanker (series of 4), 30 800 cgt, to be built at Samho Heavy
Industries; 5 762 TEU containership (series of 2), 42 835 cgt, to be built at Samsung
Heavy Industries (SHI);
DSME has become the leading builder of LNG carriers in the world, with sixteen shipson order, giving the yard an economy of scale unseen before. However, the detailed
analysis undertaken revealed that for the construction of LNG carriers there are limits tothe improvement in efficiency as some yard equipment needs to be duplicated, leading to
high up-front investment costs. Furthermore, DSME managed to start as a new companyin late 2000, shedding most of the debts of its predecessor.
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Therefore DSME can operate a very large state-of-the-art shipyard without the massiveinitial investment costs being reflected in their product prices. Nevertheless DSME still
stands at a debt to equity ratio of 279 % (estimated for 2001), and although it is currentlycash rich due to high order intake in 2001, this is likely to be dissipated when those
orders need to go into production and the actual building costs begin to be incurred. SHI
remains burdened with a comparatively high level of debt (the debt to equity ratio for2001 is estimated to be still more than 200 %) and this fact is reflected in their cost base.SHI also suffers from a lower productivity than its Korean competitors, leading to higher
wage costs. In addition SHI did not manage to attract multiple orders as Daewoo andHyundai did and this has to show in the unit costs.
After being able to dispose of some non-performing assets stemming from HHIs
previous engagement with other Hyundai subsidiaries, HHI seems now to be headingtowards profitability. HHIs debt to equity ratio is assumed to reach 183 % in 2001, but
as with all Korean yards, an assessment of the yards financial situation is difficult tomake. Very few meaningful financial figures are given and published accounts are not
very recent and have little or no annotations.
Conclusion
The world shipbuilding market is characterized by a strong imbalance of supply and
demand, that over-expansion of shipbuilding capacity in Korea has led to very low offerprices in most market segments and that the resulting losses for Korean yards, in some
cases, have been compensated through financial restructuring which.
The world merchant fleet expanded to 895.8 million deadweight tons (dwt) at thebeginning of 2005, a 4.5 per cent increase. Newbuilding deliveries increased marginally
to 49.4 million dwt, and tonnage broken up and lost was more than halved to 10.6 milliondwt, leaving a net gain of 38.8 million dwt.
The fleets of oil tankers and dry bulk carriers, which together make up 73.3 per cent of
the total world fleet, increased by 6.1 per cent and 4.2 per cent respectively. There was a8.4 per cent increase from 90.5 to 98.1 million dwt in the container ship fleet and a
7.6 per cent increase from 20.9 to 22.5 million dwt in the liqufied gas carriers fleet.
The average age of the world fleet dropped marginally to 12.3 years, with almost 27.3 percent of the fleet 20 or more years old. General cargo vessels had the highest average age
(17.5 years) and container vessels the lowest (9.4 years).
Registration of ships by developed market economy countries and major open-registry
countries accounted for 27 and 45.1 per cent of the world leet respectively. Openregistries increased their tonnage marginally; two thirds of this beneficially owned. Fleet
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is owned by market-economy and developing countries. Developing countries sharereached 22.6 per cent or 202.3 million dwt, of which 155.9 million dwt is registered in
Asia.
References:
I. S.R.Tolofari (1989), Open Registry Shipping, AComparative Study of Costs and
Freight Rates, Gordon and Breach Science Publishers, Amsterdam
II. Roy L. Nersesian (1981), Ships and Shipping, A comprehensive Guide, Penwell
Books, Oklahoma
III. www.ship4ever.com
IV. www.nautikal4ever.com
V. http://www.clarksons.net/.
VI. http://www.fearnleys.com/.
VII. UNCTAD Review of Maritime Transportation, 2004, Pg 19-53
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Appendix
Index reference
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Arrangement of work
The merchant fleet statistics are based on Lloyds Register-Fairplay data supplied to DfT
every quarter.
VesselsThe statistics include all known sea-going ships (and a few non-seagoing vessels) of 100
gross tons (gt) and above. United States reserve fleet (except for mid-year 1998) andGreat Lakes fleet are included but most naval vessels are excluded.
Registry
Ships are registered at ports, and registry (or flag) refers to the country of the port atwhich a ship is registered. The breakdown of flags and flag groups by country is as
follows:United Kingdom - Great Britain and Northern Ireland.
Crown Dependencies - Isle of Man and the Channel Islands.
Dependent Territories - Anguilla, Bermuda, British Virgin Islands,
Cayman Islands, Falkland Islands, Gibraltar, Hong Kong (until 1 July1997), Montserrat, St Helena, Turks and Caicos Islands.
European Community at 30 April 2004 - United Kingdom (includingIsle of Man and the Channel Islands), Austria, Belgium, Denmark
(including DIS, Faeroes and Greenland), Finland, France (includingFrench Antarctic Territory, French Guiana, French Polynesia,
Guadeloupe, Martinique, Mayotte, New Caledonia, Reunion, St Pierre& Miquelon and Wallis and Futuna Islands), Germany, Greece, Irish
Republic, Italy, Luxembourg, Netherlands (including NetherlandsAntilles and Aruba), Portugal (including Madeira, MAR, Azores and
Macao), Spain (including Canary Islands and CSR) and Sweden.
Countries acceded to EU on 1 May 2004 - Cyprus, Czech Republic,Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Republic
and SloveniaCanada - Canada (including Great Lakes fleet)
Norway - Norway (including NIS)
USA - USA (including Great Lakes fleet, American Samoa, VirginIslands of the USA, Northern Mariana Islands, Guam, Puerto Rico and
USA reserve fleet (except for mid-year 1998).
UK ownership
UK owned (or directly owned) ships, wherever registered, are those for which thenationality of the owner is United Kingdom (not including the Crown Dependencies).
Where a company owns a vessel, its nationality is deemed to be that of the country inwhich the company is incorporated.
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UK parent owned ships are those for which the nationality of the company having thecontrolling interest in the direct owner is United Kingdom.
Units of measurement
Under the International Convention on the Tonnage Measurement of Ships, 1969, gross
tonnage (GT) is defined as the following function of the total volume of all enclosedspaces in the ship (V), in cubic metres:GT = K1V
Where K1 = 0.2 + 0.02log10V.
Although the Convention is fully in force, the old "gross registered tons" measure is stillthe measure recorded on Lloyds Register-Fairplay World Fleet Database for a
substantial proportion of world tonnage. This was directly related to the capacity of thespace within the hull, and of the enclosed spaces above the deck, which were available
for cargo, stores, passengers and crew, with certain exceptions. In practice, old and newtonnage measures are fairly similar, except for ships with substantial exempt spaces
under the old system, such as Ro-Ro vessels.
Deadweight tonnes (dwt) is the weight of cargo, stores, fuel, passengers and crew carriedby the ship when loaded to her maximum summer loadline. Up to 1986, statistics werecompiled for imperial deadweight but from 1987 metric units are used (one deadweight
ton (imperial) = 1.016 deadweight tonnes).
TEU (twenty-foot equivalent units) is a measure of the container-carrying capacity of
certain types of ships, being the number of standard twenty-foot containers, which thevessel could carry.
Trading vessels
Trading vessels are those, which carry cargo or passengers for commercial purposes.Certain vessel types, for example dredgers and fishing vessels, are therefore deemed to be
non-trading. Other vessels, whilst constructed for trading purposes, are also deemed to be non-trading because they have been converted for a non-trading use, for example
storage or a floating restaurant, or because they are non-seagoing.
Ship prices (Table 7.5)
These figures, which are priced in US dollars, are taken from the annual Reviewspublished by Fearnleys of Oslo, Norway.