2011 May June Maritime Executive PRINT Edition Has Hit the Street

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Global Shipbuilding – Steady As She Goes

It has been a rough few years since the bottom dropped out of the shipbuilding market in late 2008, but industry indicators are positive and shipowners are slowly reentering the marketplace and testing the waters for deals and financing. At present, the industry is dominated by Korea, China and Japan, but this edition features one of the most highly respected and innovative shipbuilders in the world – Netherlands-based Damen Shipyards and its Chairman, Kommer Damen. In 1969, after he bought the company from his father, Kommer Damen began following his entrepreneurial drummer and created a market for modular vessels that could be delivered within weeks of getting the order. They were tough and sturdy and known for their resale value, and soon operators around the world began beating a path to his door. Today, the company has more than 30 shipyards, including a number of support divisions, and has built over 5,500 vessels since 1969. Kommer Damen is the founding father of modular shipbuilding. His forward-thinking and innovative spirit changed the industry, and our publication is honored to cover this global icon of shipbuilding.

We review global shipbuilding in its entirety with Bob Spicer’s latest contribution. From Vladivostok to down on the bayou, Spicer checks in with a number of well-known players and reports on the industry buzz. Meanwhile, new contributor Kathy Smith spoke to a number of naval architects to uncover the latest trends while asking “How Green Is Your Vessel,” and Art Garcia explored developments in pipes, pumps and valves and found that business is very good but counterfeiting remains a major problem.

Larry Kierns covers the budget debate on Capitol Hill, which is filled with twists and turns and promises to keep you a little edgy. His “Washington Insider” is a great piece on America’s fiscal dilemma and a must-read for folks wondering why nothing ever seems to get done in Washington. Jack O’Connell crafts two gems for the edition. “Blowin’ in the Wind” brings us up to speed on the world of offshore wind farms and reminds us that Europe is 20 years ahead of the U.S. in building and technology. O’Connell also offers us his yearly survey of annual reports, “Mirror, Mirror on the Wall,” a fun piece from someone who actually still reads corporate annual reports.

Ever wonder why two identical ships built in the same series can sell for totally different amounts around the same time? Well, this anomaly was studied by the Harvard Business School, and Compass Maritime’s Basil Karatzas contributed to the study and wrote this edition’s “Annals of Finance” column. For companies in the business of buying and selling vessels – and who isn’t? – this is an absolute must of a read. Michael Economides, the “professor of oil,” writes about a company that has changed the playing field for ethanol production. Imagine not impacting the costs of agricultural products like sugar cane and corn to distill ethanol? Imagine using conventional sources such as natural gas and coal to cheaply produce fuel? Well, the day is here and the story in this edition, so enjoy.

While shipbuilding’s comeback is still treading water, there’s a sense the bottom has been reached and we’re on the upswing. Sandy Thomson, Chairman of Thordon Bearings and the subject of this edition’s “Executive Achievement” article, notes that countries like Poland never went through the global recession and its shipbuilding industry is robust. The same can be said for Brazil, which is building a massive offshore fleet to develop its huge oil resources. We have written many editorials over the last year about the potential of the U.S. maritime industry to put the country back to work by filling its shipyards with newbuilds and training a new generation of seafarers. But as Clay Cook points out in his penetrating analysis, “Dead in the Water,” the 2012 Department of Transportation budget has sidelined the sector till later in the decade. Instead of funding the auto industry with $25 billion to retool its factories to build more environmentally sensitive cars, the monies should be diverted to U.S. shipbuilding to stimulate the economy and create jobs for the nearly nine percent of Americans who are still unemployed.

Enjoy the articles – there’s lots of intellectual capital to catch up on! – MarEx

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